Skymark Airlines offers all-premium A330s on domestic routes. It could only work in Japan?

Few airlines have made all-premium cabins work, with the list of withdrawals ranging from fly-by-night operators to Singapore Airlines' withdrawal from its non-stop A340-500 New York and LA services. But Japan's third-largest airline, Skymark, is looking to buck the trend by using all-premium A330-300s on trunk routes in the domestic Japanese market. Skymark only operates domestically at present, although regional and long-haul destinations are on the cards.

The plan is not as foolhardy as history suggests. In fact, Skymark Airlines may have one of the best chances of succeeding in the all-premium space. "All-premium" has generally meant business class, for most of the attempts have been in this cabin. But Skymark is effectively planning an all-premium economy cabin, seating 271 in an A330-300, compared to 116 that Hainan Airlines tried on A330-200s and only 100 on Singapore Airlines' A340-500s. Skymark wants to differentiate itself in the high yield domestic market from ANA and JAL, which have cramped domestic cabins (despite averaging below 70% load factors).

Combined with Skymark's significantly lower operating cost, its proposition may find healthy traction.