Skymark Airlines reportedly plans to borrow up to JPY50 billion (USD637 million) through a syndicated loan from banks in Europe to finance the purchase of A380 aircraft, according to a report in The Nikkei. The loan is reportedly to be guaranteed by Coface, Britain's Export Credits Guarantee Department and Euler Hermes Deutschland AG The airline has already placed orders for six A380s, which it plans to use for international services from Tokyo Narita to New York and London in 2014. Total investment in the six aircraft is roughly JPY150 billion (USD1911 million), with the remainder of the funds to come from Skymark's own cash reserves.
Skymark Airlines seeking up to USD637m in funds from European banks for A380 financing
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This is tantamount to talking of “irreconcilable differences” in a divorce case. If the two airlines have been unable to consummate something that meets their mutual goals after almost a year of operations, this is an ex-marriage.
Even ANA, less bluntly, effectively acknowledges that the partnership hasn’t worked and that it is considering combining the operations of its part-owned Peach with the residue of the AirAsia Japan operation.
So where to next? The next steps could be the genesis of a whole new scenario, or – something less. AirAsia might withdraw completely, form a financial JV partnership – or perhaps go back to talking to Skymark.
Gulf airlines at the Dubai Airshow smash order records, a vivid message to governments and industry
The opening day of the Dubai Airshow brought orders for over 350 widebody passenger aircraft from Gulf carriers. The size of the orders – 150 777Xs and a further 50 A380s for Emirates – gives a sense of the scale Emirates, Etihad and Qatar Airways are still to achieve. The three have already re-written aviation, from network construction to partnership strategy. While markets have benefitted, the three have caused consternation. No doubt that after this spate of orders, competitors are worried now that projected growth targets in abstract percentage terms have been translated into metal.
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