Delta in possible deal for Skymark

[typhoonpilot]

Delta throwing lifeline to Japan's bankrupt carrier Skymark: report

16 hours ago




Tokyo (AFP) - Delta Air Lines is offering a lifeline to Japan's bankrupt Skymark Airlines that would give the US carrier unprecedented access to domestic landing slots at Tokyo's Haneda airport, a report said Tuesday.

The Nikkei business daily said Delta has agreed to join a turnaround plan being led by Skymark creditor Intrepid Aviation, which would see the US company buy as much as 20 percent of the Japanese airline for an unspecified price.

The plan is a rival offer to one submitted by Skymark earlier this year that would see it owned by its banks, All Nippon Airways and a domestic investment fund.

A Skymark spokeswoman in Tokyo said the company was unaware of the new plan.

If the Delta deal is successful, the US carrier would be the first foreign airline to get access to slots for domestic flights at the downtown airport. The coveted slots are currently limited to Japanese carriers, including ANA and Japan Airlines as well as Skymark.

Skymark's roughly 200 creditors will vote on the competing proposals at an August 5 meeting, the Nikkei said.

Skymark, Japan's third-biggest airline which flies on domestic routes, filed for bankruptcy protection in late January in the face of potentially massive penalties linked to a cancelled $2.2 billion jet order with Airbus.

The still-operating airline's efforts to turn itself around failed as it struggled against tough competition in the sector, while its troubles deepened after the deal with Airbus collapsed last summer

 

[mrivc211]

I almost went to work there. Phew!

 

[typhoonpilot]

Delta has been trying to get more slots in Haneda for awhile. This is an interesting play and could be beneficial towards reaching that goal. Based on Delta's relationship with Airbus, they could probably make the $2.2 billion order cancellation issue go away pretty easily.


TP

 

[B767]

Delta has been trying to get more slots in Haneda for awhile. This is am interesting play and could be beneficial towards reaching that goal. Based on Delta's relationship with Airbus, they could probably make the $2.2 billion order cancellation issue go away pretty easily.


TP

I'm not very bright, but the article said Delta could gain access to domestic slots. Was that the point of the post? That Delta could be doing Japanese domestic flying out of Haneda? I know it wasn't to bring light to Delta's good relationship with Airbus. After all, ALL airbii trump the 787

 

[typhoonpilot]

I'm not very bright, but the article said Delta could gain access to domestic slots. Was that the point of the post? That Delta could be doing Japanese domestic flying out of Haneda? I know it wasn't to bring light to Delta's good relationship with Airbus. After all, ALL airbii trump the 787

Speculating out loud is the point. Maybe there is a way to leverage a relationship with Skymark into some international slots at Haneda. Also might be an additional inroad into connecting traffic from the Japanese market.


TP

 

[Polar742]

I'm not very bright, but the article said Delta could gain access to domestic slots. Was that the point of the post? That Delta could be doing Japanese domestic flying out of Haneda? I know it wasn't to bring light to Delta's good relationship with Airbus. After all, ALL airbii trump the 787

Maybe to challenge United on their legacy AirMic routes?

 

[BobDDuck]

Speculating out loud is the point. Maybe there is a way to leverage a relationship with Skymark into some international slots at Haneda. Also might be an additional inroad into connecting traffic from the Japanese market.


TP

Good luck with that. Even airlines based in Japan haven't been able to turn domestic slots into international ones at HND. I do agree with your second point though.

 

[Kingairer]

All your base are belong to us.

 

[Autothrust Blue]

All your base are belong to us.

Resistance is useless!

 

[H46Bubba]

It's a win win for both parties. It will have to be 20% or below, so Skymark doesn't loose slots.

 

[Ecl!pse]

It's a win win for both parties. It will have to be 20% or below, so Skymark doesn't loose slots.

Agree completely it's a win for both Delta and Skymark. Assuming it goes through, the biggest winner in all of this is Intrepid - they were SOL with the A330's they had placed with Skymark. DL at least gives them an opportunity to [somewhat] save face. Talk about possibly pulling a rabbit out of a hat.

 

[purpel]

This deal and the Q1 expected profits were exceeded. Got the stock at 42.80 and it's already 44.94.

Hope someone invested!

I bought a ton and will pull the trigger soon on selling for a nice profit!

 

[typhoonpilot]

TOKYO (Reuters) - ANA Holdings Inc has won creditor backing to lead a turnaround of bankrupt Japanese discount carrier Skymark Airlines Inc [SKALF.PK], defeating a plan that proposed Delta Air Lines Inc as its sponsor.

The victory gives Japan's largest carrier access to Skymark's 36 landing slots at Tokyo's crowded Haneda airport, helping it cement its domestic dominance over Japan Airlines Co Ltd .

For debt holders seeking to recoup their money, ANA is "less risky" than Delta, a creditor told Reuters ahead of the decision.

ANA operates airlines in Japan, has already discussed business plans with Skymark and is close to Prime Minister Shinzo Abe's government, the creditor added, declining to be identified due to the sensitivity of the matter.

Political backing helped ANA garner 11 of 16 new international landing slots at Haneda in 2013.

More than 170 creditors voted on the proposals in two rounds - the first weighted by amount owed, while the second gave each creditor an equal vote. ANA, which has offered to buy 16.5 percent of Skymark, won 60.5 percent of the first round and more than three quarters of the second.

"Delta is a mega carrier and therefore a daunting opponent, but it had a number of hurdles to overcome," Toyuki Nagamine, a director at ANA said at a press briefing with representatives from Skymark and its financial backer private equity firm, Integral Corp, which supported ANA.

For Delta, the decision is a lost opportunity to gain a bigger presence in Japan where it does not have an alliance partner.

Barring any upheld objections from creditors, Integral's ANA-sponsored revival plan will be implemented after 30 days.

"While this is not the result we had hoped for, as Skymark's single largest creditor, Intrepid will continue to focus on working constructively with key stakeholders," Franklin Pray, chief executive of Intrepid Aviation said in a statement.

Intrepid had proposed Delta as a sponsor after it fell out with ANA over a failed deal to lease the airline planes.

Skymark's failure came after its finances were stretched by plans to fly Airbus Group SE A380 superjumbos on overseas routes. Airbus demanded a $710 million cancellation fee after the airline was unable to keep up with payments.

Airbus, Skymark's second-biggest creditor, sided with ANA, people with knowledge of the matter told Reuters earlier in the day.

 

[Kingairer]

I think they just just bought 3% in A Chinese company, so they Borg moves on. All your base, except this one, are belong to us.