Struggling Skymark Airlines Inc. said Thursday it will stop flying from Narita airport, Japan's second-biggest airport, to focus on operations from Haneda, the nation's busiest airport, and also plans to raise ticket prices on almost all its routes.
Skymark, Japan's third-largest airline after All Nippon Airways and Japan Airlines, said Thursday that it will halt all three of its flights from Narita, in Chiba Prefecture. It will stop flying from there to Sapporo , Yonago in Tottori Prefecture and Naha in Okinawa, as revenue on those routes has been squeezed by stiff price competition with low-cost carriers or other factors, Skymark said.
Instead, the Tokyo-based carrier will increase services on some mainstay routes between Haneda, located in central Tokyo, and cities such as Kobe and Fukuoka to restore its flagging finances.
The strategic shift comes as Skymark may also abandon plans to launch international flight services by March. Last month Skymark said it was in talks with Airbus S.A.S. to alter a contract to buy six A380 aircraft, including possibly canceling the order for the double-deck aircraft, after failing to make a required payment.
Skymark may fall into major trouble if it is forced to pay penalty charges of as much as ¥70 billion for breach of contract in the deal worth a reported ¥191.59 billion, according to a source.
Skymark also said Thursday it plans to raise ticket prices on almost all its routes on Oct. 26 or later.
The steepest rate increase for an adult regular ticket will be 69 percent on flights between Kobe and Sapporo, the airline said.