SkyNetAsia studying capital increase plans; network and fleet growth planned

SkyNetAsia (SNA) is reportedly studying plans to increase its capital by attracting new investors, as the carrier seeks to develop its domestic network following the slot expansion at Tokyo's Haneda Airport in Oct-2010 (OITA NEWS, 13-Mar-2010). New routes under consideration by the Miyazaki-based domestic airline include Haneda-Fukuoka, Haneda-Naha (Okinawa), Haneda-Oita and Oita-Naha services. SNA will have four slots at Haneda, three from Oct-2010 and one from Apr-2011. A decision is expected by the end of Apr-2010. According to local media reports, JPY500 million/USD5.5 million would be required as a basic investment per route, indicating that the carrier may seek JPY1-2 billion from outside investors (USD11-22 million). The carrier is also conducting a fleet renewal programme, as part of which it is replacing nine B737-400s with B737-800s from Summer 2011. The carrier, in Feb-2010, signed a contract with AWAS for the lease of the first aircraft.