Struggling Skymark Airlines Inc. will file for protection from creditors at the Tokyo District Court, sources familiar with the matter said on Wednesday.
The airline planned to make a formal decision on the matter at an extraordinary board meeting later in the day, the sources said.
Skymark will continue operations for the time being, as it looks for a partner to restore its money-losing operations.
The carrier has 32 lucrative landing slots at Tokyo’s Haneda airport and has been in talks with Japan Airlines Co. and All Nippon Airways Co. over code-sharing as part of its restructuring efforts.
Skymark is expecting a net loss of ¥13.68 billion in the year ending March, its second consecutive annual loss, amid increased competition with low-cost carriers.
The Japanese airline has also been discussing a penalty charge with Airbus S.A.S. related to the termination of its order for six A380 superjumbos.
The aircraft-maker has demanded that Skymark pay around $700 million, or about ¥83 billion.
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