All Nippon Airways (ANA) president Shinichiro Ito said the carrier is targeting annual sales of between JPY150 billion and JPY200 billion (USD1.8 billion and USD2.5 billion) in five years from its LCC subsidiaries launching in 2012, acccording the The Nikkei reports. AirAsia Japan "will add five or six planes to its fleet each year, bringing the total to 25-30 aircraft in fiscal 2016," Mr Ito noted, adding that while the LCCs will "take away some of ANA's customers, they will contribute to group earnings". Peach Aviation, meanwhile, launched operations on 01-Mar-2012. [more - CAPA Blog]
ANA expects LCC subsidiaries to achieve annual sales of USD1.8bn to USD2.5b in five years
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Skymark Airlines bankruptcy and CEO Nishikubo exits. Now to re-structure. The airline has a future
Japanese aviation once again has a loss of face with Skymark Airlines filing for bankruptcy almost five years to the date Japan Airlines did so. But like JAL, Skymark's filing with liabilities of JPY71 billion (USD603 million, a fraction of JAL's USD25 billion filing) may prove to be the best option forward, and a chance to emerge stronger. (The carrier will be de-listed but remain flying.) Skymark's filing was accompanied with resignation of Shinichi Nishikubo. He was more than Skymark's CEO and largest shareholder: he took a deeply personal vested interest and ran the company top-down. Skymark without Mr Nishikubo is a scenario many employees could not have imagined. But this is an opportunity.
Skymark now has a tabula rasa. Mr Nishikubo used Skymark to crusade against legacy incumbent airlines, creating friction when there became a need last year to have a logical codeshare with those same incumbents. Initially a revelation in the Japan market as a successful LCC, Mr Nishikubo's involvement, such as personally making Skymark's IT systems or deciding on the A380 purchase, sacrificed Skymark's strategic value and chance for development. Skymark must now decide what its future is, and without Mr Nishikubo Skymark there is no predestined direction. Routes will be cancelled and the A330s withdrawn. Skymark has a foundation to build on, and finally being able to create a sound strategy should rightfully see investors line up.
Skymark Airlines could be a Delta target as Airbus & Intrepid oppose an ANA-led restructure
It was not Japanese aviation's proudest day when All Nippon Airways was selected to sponsor the re-rehabilitation of bankrupt Skymark Airlines, the country's third-largest airline. Putting Skymark under the wing of ANA thereby returned air transport to an ANA-JAL duopoly that the Japanese government has for years worked in vain, and perhaps unenthusastically, to prevent.
Now foreign forces may reverse the situation in a challenge to Tokyo's preferred political outcome. Airbus and lessor Intrepid represent the majority of Skymark's debt, allowing them considerable weight over Skymark's restructuring plan – if a Tokyo court, undoubtedly under political pressure, gives airtime to non-Japanese concerns. At the centre of the dispute are Skymark's discarded A330 and A380s that are customised and difficult to place with other airlines. It appears Airbus and Intrepid expected ANA to offer a satisfactory solution for the aircraft but now there is none.
Airbus and Intrepid may prefer Skymark to restructure with the help of a different airline that will remedy the A330/A380 situation. Skymark has been shopped around to most of the world's airlines; China's HNA put in an offer; Delta could be a candidate, still lacking a Japan solution. A Skymark independent of ANA is in Japan's interest, if the country can accept a foreign airline as its partner.