AirAsia Wants Skymark?

AirAsia Seeks Control of Skymark

2014/8/19 2:00

Nikkei on August 19 reported that AirAsia, the largest low cost carrier (LCC) in Asia is now studying to support struggling Skymark, Japan’s third largest carrier, hoping to acquire management control through its equity.

Skymark, now in business slump by competing a bunch of other emerging LCCs, has enough slots at Tokyo’s Haneda International Airport and flights from/to Haneda are dubbed cash-cow routes.

Skymark’s destinations from Haneda effective late-October 2014:

• Sapporo
• Fukuoka
• Naha
• Kagoshima
• Kobe
• Ishigaki

Skymark had ordered six Airbus A380s to launch international services but the carrier failed to pay for the aircraft and finally Airbus terminated the contract that may lead to cancellation fees as close as USD700 million

AirAsia with its fleet of over 150 Airbus products, is a major customer of AIrbus and has started to sound the European aircraft maker if it is possible to reduce the amount of penalty to Skymark.

Japanese civil aviation regulations stipulate that a  non-Japanese carrier cannot hold over one third of voting right; AirAsia may acquire Skymark’s capital through its own subsidiary  registered in Japan.

Shinichi Nishikubo, Skymark’s CEO and president, said ‘Skymark is still looking for its survival by itself.’  He holds about 30% of Skymark stocks.

However, if the real control of Skymark would be shifted to non-Japanese ownership, it would be unclear whether Ministry of Land, Infrastructure, Transport and Tourism would approve the same slots at Haneda for a new company.■

Skymark on August 19 denied the Nikkei reporting and stated that the company was never contacted by AirAsia.