nishimark

"The move has the potential to increase competition in Japan by allowing Delta to funnel international travelers via Tokyo to more Japanese cities that Skymark serves."

http://finance.yahoo.com/news/delta-...--finance.html

Taiwaned

Interesting!

Would that mean that after Delta invests, can they invite Sky Mark to Skyteam Alliance?

While I am primarily a Star Alliance member, having all three alliances represented in Japan domestically would be good.

armagebedar

Intrepid Aviation is confirming that DL will be the sponsor candidate for Skymark's rehabilitation.

http://intrepidaviation.com/uploads/..._Candidate.pdf

KPT

I wonder if Delta will negotiate something with Airbus as well to obtain those A380s that Skymark failed to purchase (and allow any lawsuit to be settled)

nishimark

Quite of bit of interesting discussion about this topic on the Delta forum.

http://www.flyertalk.com/forum/delta...-airlines.html

joejones

There is a Skymark BK thread on this forum as well:

http://www.flyertalk.com/forum/other...-declared.html

This morning's Nikkei indicates that Delta is the likely winner in the creditor vote, as Rolls-Royce and CIT seem to be preparing to split their vote between both proposals, which together with Intrepid's share would result in at least 52% of the debt voting for Delta: http://asia.nikkei.com/Business/Deal...rs-split-votes

joejones

An interesting piece today in the Japanese business magazine Shukan Diamond raises various questions about the Delta-Skymark deal, particularly surrounding the fact that there is very little potential for the two airlines to feed each other so long as Delta's hub is at NRT and Skymark's hub is at HND. Skymark is unlikely to give up its valuable HND slots, and Delta's HND operation will be limited to its late night LAX flight for a while longer, so where is the value?

The author argues that if Delta fails to considerably expand its HND operation within the next few years, they wouldn't stand to gain much from a Skymark partnership and would probably sell their stake to another carrier -- maybe even JAL (which would aggravate the LDP government). The author also questions whether Delta's ulterior motive is to use Skymark as leverage against the Japanese government to further Delta's goal of building a HND hub, although I am not sure what the author specifically has in mind here...

Link (in Japanese): http://diamond.jp/articles/print/75456

AlwaysAisle

Skymark Airlines’ creditors meeting was held on August 5. At the conclusion of the meeting it was decided to choose the reorganization plan supported by ANA and Integral (Japanese investment company).

Another plan which was supported by Delta Airlines was proposed by the largest creditor of Skymark Airlines, Interpid Aviation (the U.S. aircraft leasing company). More than 50% vote by creditors were required for a reorganization plan to be approved by creditors. The second largest creditor of Skymark Airlines is Airbus from Europe. During the creditors meeting Airbus favored the plan supported by ANA.

There are rumors on Japanese business media that there maybe some possible order of Airbus aircraft by ANA in near future behind this decision by Airbus. However, obviously, both ANA and Airbus are denying that.

joejones

That conspiracy theory re: an Airbus order is the only explanation that makes sense to me, as ANA is basically a die-hard Boeing customer. Nikkei indicates that the aircraft in question could be none other than SKY's A380s:

AlwaysAisle

No doubt that is one of Airbus’ top wish list, ANA ordering A380. However, many in aviation industry is doubting that. Japanese government is slowly moving toward open sky deregulation of Japanese commercial aviation, both ANA and JAL have said A380 is too big of aircraft for them at this moment. 747SR, 747-200, and 747-400 worked well for both ANA and JAL when Japanese commercial aviation was more regulated by government.

Air fares and flight frequencies were set by Japanese government so that airline could break even at 60% load factor. But now heading to the direction of deregulation with LLC competing in and out of Japan, many say A380 is too big for both ANA and JAL.

Both ANA and JAL used to be big Boeing customer, but both has not ordered 747-8i. Many airlines say, not just ANA and JAL, that 747 is a great aircraft if they can fill seats all the time. Airlines have no problem selling all the seats on 747 flight every single day during peak travel season of summer and end of the year. However, during low travel season of February, June, October, etc. airlines do have difficult time selling all the seats on 747. Which make 747 difficult aircraft to operate all year long from operating cost. A380 seems to be in similar situation.

JAL used to fly 747s every day all year long to HNL and GUM. JAL could sell seats on flights to HNL and GUM, but those are leisure destinations where heavy demand on discounted fares and low demand on full economy, business, and first class fare. Yes, ANA may able to fly A380 on HND-HNL and fill seats all year long, but with passengers filled with discount economy fares profit margin is not that great.

Remember back in peak of bubble era, JAL reconfigured 747-200 Big Apple Express aircraft into First class and Business class only (no economy class) configuration during late December and early January on NRT-JFK flight because there was that much demand for first class and business class. That was good old days, today cannot expect something like that. Yes, ANA and JAL wish something like that still exist today.

ANA has ordered A320/A321 neo for narrow body aircraft, and ordered 787-10 and 777-9X for international wide body aircraft. A380 likely is hard sell for ANA, where there are not many routes where aircraft size of A380 can make profit all year long.

Will ANA order A380…, not sure…

joejones

Not to mention that A380s are still banned from HND, so I could only see ANA operating them on the biggest US routes from NRT, at least for the moment.

ChrisLi

Do you have any support for that? the last time I read HND is actually building support for A380 at it's international terminal and gate 107 is A380 compatible. I have no doubt that when ANA buys it, HND will support it.

http://www.jata-net.or.jp/vwc/pdf/10...ndairguide.pdf (Page 4)

joejones

Google "haneda a380 daytime." It has to do with the level of air traffic during the day and the higher wake turbulence from the A380, not the capacity of the airfield/terminal.

I believe they can technically operate A380s at night, but good luck filling one up at those hours.

AlwaysAisle

Sounds like there actually was a closed door meeting behind the scene during the reorganization of Skymark Airlines.

ANA to buy A380

The article saying that ANA will deploy on Hawaii route.

armagebedar

Please follow this thread in the ANA forum for further discussion of the rumored A380 purchase.

http://www.flyertalk.com/forum/all-n...ing-a380s.html

Regards,
armagebedar
Japan forum moderator