Business May. 02, 2008 - 04:11AM JST ( 1 )

TOKYO —

Japan Airlines is set to sell a 49% equity stake in its wholly owned credit card unit, JALCARD Inc, to Mitsubishi UFJ Financial Group Inc <8306>

for 46 billion yen, sources familiar with the matter said Thursday. JAL will retain the remaining 51% stake in JALCARD, the sources said.

The airline, which is struggling to rebuild its operations through such measures as a shift to fuel-efficient aircraft, plans to strengthen its financial standing using the proceeds from the sale of the JALCARD stake. JAL and Mitsubishi UFJ, one of Japan’s three megabank groups, plan to form an alliance in credit card operations by making JALCARD their joint venture.

JCN