UPDATE 2Japan s ANA says considering investment in bankrupt Skymark Airlines

Post on: 16 Март, 2015 No Comment

UPDATE 2Japan s ANA says considering investment in bankrupt Skymark Airlines

* Skymark had total liabilities of 71.09 bln yen

* Bankrupt airline owns valuable slots at Haneda airport

* Monday’s deadline for airlines to submit Skymark reform interest (Adds report of AirAsia applying to be Skymark sponsor)

TOKYO, Feb 23 (Reuters) — Japan’s biggest airline, ANA Holdings Inc, said it was considering injecting capital into Skymark Airlines Inc as part of a rehabilitation plan for the bankrupt domestic budget carrier.

Besides ANA, other investors have also expressed interest in participating in a rescue package for Skymark, according to media reports and sources. Skymark holds valuable slots at Tokyo’s crowded Haneda airport, making it attractive to potential investors.

Skymark last month sought protection from creditors, blaming a weak yen and a dispute with jet maker Airbus Group for its financial woes. It had liabilities of 71.09 billion yen ($596.24 million).

The budget airline agreed on a 9 billion-yen sponsorship deal with Tokyo-based fund Integral to keep the business going and is now seeking co-sponsors to help it turn the business around.

The court-appointed deadline to submit expressions of interest for taking part in Skymark’s revival was Monday for airlines and last Thursday for non-aviation companies.

ANA announced its interest in funding Skymark through a statement but did not give any other details.

UPDATE 2Japan s ANA says considering investment in bankrupt Skymark Airlines

Malaysia’s AirAsia Bhd through its Japan subsidiary has also applied to be a sponsor for Skymark, Kyodo newswire reported. AirAsia officials in Tokyo were unavailable for comment.

AirAsia in July announced plans to set up a low-cost airline in Japan, its second attempt to tap the Japanese market after it ended an earlier joint venture with ANA.

People with knowledge of the matter told Reuters last week that other companies, including travel company H.I.S Co. which set up Skymark in 1996, brokerage Daiwa Securities Group, Shinsei Bank, and financial services provider Orix Corp had expressed interest in taking part.

Interested parties will have until May 29 to work out a rescue plan before submitting it to the Tokyo District Court and seeking approval from Skymark’s creditors.

Skymark, which still operates flights in Japan to destinations such as Kobe in western Japan and Fukuoka on the island of Kyushu, is expected to start implementing the plan from around the end of July. ($1 = 119.2300 yen) (Reporting by Antoni Slodkowski; Editing by Muralikumar Anantharaman)

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