Bankrupt Skymark Airlines Inc. is eyeing seeking another airline’s assistance for its rehabilitation plan involving cost-cutting steps such as joint procurement of fuel, according to a document filed with the Tokyo District Court.
The application seeking court protection from creditors, filed Jan. 28, also shows that the company’s cash reserves have decreased to around ¥300 million.
The third-largest Japanese carrier is believed to have given up on rebuilding on its own after facing difficulty in making necessary payments, such as airport fees, of around ¥4 billion by the end of last month needed to continue operations.
The document says that with the help of another airline, Skymark would be able to improve its business efficiency through cooperation in ticket sales and providing training for crew in addition to joint fuel procurement.
“We aim to drastically improve our management situation more swiftly,” it says.
Skymark Chairman Takashi Ide said at a news conference Jan. 29 that the main point of rehabilitation will be that the airline will remain as “the third force.”
Meanwhile, the company said it will postpone the release of its April-December earnings, scheduled for Thursday, to Feb. 12 to have its bankruptcy situation reflected in the financial results.
Skymark filed for bankruptcy protection with liabilities of around ¥71 billion due to competition from low-cost carriers.
ANA Holdings Inc., which owns All Nippon Airways Co., has said it will consider providing assistance to the troubled carrier by monitoring the situation.
Tokyo-based investment fund Integral Corp. is considering providing around ¥10 billion to allow the airline to continue operations for the near term.
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