New reports now show that Japan Airlines is to maintain its business relationship with American Airlines and the Oneworld Alliance after it emerges from state sponsored restructuring. This news puts an end to the rival offers that Delta Airlines and the SkyTeam Alliance had been offering the struggling airline.

This new announcement comes just as Japan Airlines undergoes a government sponsored restructuring plan that came after it filed for bankruptcy protection last month. Either way, this move is seen as a huge boost to American Airlines, which had been locked in an intense battle with arch rival Delta to keep Japan Airlines on their side. Just before Japan Airlines went into bankruptcy, the two airlines had entered into a bidding war worth hundreds of millions of dollars if the Japaneses carrier would choose their alliance over the other.

American Airlines will now be able to maintain its principal Asian partner. The carrier looks to use this partnership to build new links to Japan following the agreement in December between the United States and Japan to liberalize air traffic. This new open skies policy between the two countries will now remove many of the legislative hurdles to operate flights between the United States and Japan. This will allow airlines from both countries to have a wider range of destinations and routes to choose from.

Japan Airlines currently links American Airlines passengers to China and other fast growing markets in the region through its Tokyo hub. An alliance with Delta was favored by Japan’s transport ministry, as the Atlanta-based airline already has hubs in Tokyo and Seoul, unlike the more Atlantic focused American Airlines. Japan’s only other big carrier, All Nippon Airways, is already partnered up with United Airlines and the Star Alliance.

Under the new restructuring plan, Japan Airlines is to cut 15,700 jobs or a third of its workforce. It will also sell dozens of non-core businesses and demand that creditors write off Y730 billion of its more than Y2,300 billion of debt.