Japan Airlines may lose its entire international operation under a plan that would reduce the mighty but profitless airline, Asia’s largest, to a mere domestic carrier.

All Nippon Airways would take over all of Japan Airlines’ international services under the plan that the government is considering. Government and Japan Airlines’ sources apparently leaked the details to the Mainichi Shimbun newspaper.

The Ministry of Land, Infrastructure, Transport and Tourism is opposed to the proposal, but the Mainichi cites some Japan Airlines executives as saying it is not a bad idea.

The rules governing state-directed rescues are forcing consideration of such a radical move. A restructuring agency, the Enterprise Turnaround Initiative Corp. of Japan is working on a bailout plan for the struggling airline but can help companies only if they can be turned around within three years. The government is evidently concerned that a profit within three years would be unachievable if Japan Airlines kept its international network.

The loss of foreign services would greatly diminish the stakes in the ongoing tussle over Japan Airlines’ alliance membership. The giant carrier is a prized partner in Oneworld, whose leading member American Airlines has been trying to ward off attempts by Delta to lure Japan Airlines to Skyteam.

But if All Nippon gets the international operations, the big winners will be that carrier’s partners in the Star Alliance.