(Yomiuri: February 18, 2015 – p. 8)
Skymark is working to shed unprofitable flights and concentrate its resources on five routes that land and take off at Tokyo’s Haneda airport, the company’s chairman, Takashi Ide, revealed in an interview with the Yomiuri Shimbun on Feb. 17.
Skymark has applied for bankruptcy protection under the Civil Rehabilitation Act. It will draw up a turnaround plan by May 29.
Ide acknowledged that the company had sought to expand operations “beyond its capacity.”
As of Feb. 17, Skymark operated 24 routes using 27 aircraft. “We can maximize profits if we concentrate on Haneda-bound flights using 20-24 aircraft,” said Ide. He is considering terminating flights to Ibaraki Airport, which relies solely on Skymark for domestic services.
Ide said that he had planned to ask Japan Airlines and All Nippon Airways to code-share flights using 271-seat, medium-haul aircraft, but indicated that the plan needs to be reviewed.
After submitting an application for court-led rehabilitation, Skymark terminated services using medium-haul aircraft and switched to 177-seat, short-haul aircraft. It continues to seek cooperation from JAL and ANA. “It would be appreciated if they could help us with joint purchases of fuel,” Ide said.
Ide reiterated the company’s intention to settle a cancellation fee of up to 700 million dollars from Airbus through negotiations. “So far no progress has been made,” he said.