All Nippon Airways Co said it may add Shanghai Airlines Co to its partnership with Asiana Airlines Inc to expand its network, Bloomberg News reported today.

"We are thinking about an alliance between China, Korea and Japan,'' President Mineo Yamamoto of Japan's second-largest carrier said at a conference in Tokyo today. The cooperation with Shanghai Airlines would start with code-sharing. An equity tie-up is not planned at present, he added.

All Nippon and Asiana, South Korea's second-largest carrier, yesterday agreed to buy stakes in each other to cement their ties. Adding a Chinese carrier to the partnership would allow the two airlines to boost their networks in the world's second-largest aviation market.

Shanghai Airlines is seeking further cooperation with All Nippon, including through the Star Alliance, spokesman Xu Jumin said by phone. He declined to comment on the possibility of an equity tie-up. The Shanghai-based carrier is likely to join All Nippon and Asiana in the Star Alliance, the world's largest airline grouping, this year.

Yamamoto also reiterated All Nippon's plans to set up a low-cost carrier by 2010. The new airline would operate under a different brand, he added.

All Nippon will buy a 0.72 percent stake in Asiana for US$12 million, while Asiana will buy a 0.16 percent stake in All Nippon for the same amount, the carriers said yesterday. The airlines also plan joint programs in areas including fuel purchasing, maintenance and training.