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Skymark Plans to Order Four Airbus A380s, Become First Customer in Japan

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Skymark Plans to Order Four Airbus A380s, Become First Customer in Japan

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Old Nov 8, 2010, 2:52 am
  #1  
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Skymark Plans to Order Four Airbus A380s, Become First Customer in Japan

Whoah, this is a pretty bold move:

Skymark Airlines Inc., Japan’s biggest low-cost carrier, said it plans to buy four Airbus SAS A380 superjumbo aircraft, putting it on track to become the first Japanese customer for the world’s biggest passenger plane.

Skymark aims to use the planes starting in the fiscal year beginning April 2014 ... Skymark, which operates a fleet of 15 Boeing 737s, plans to use the Airbus planes on long-distance flights, according to the statement. The airline is considering flying the planes to the U.S. and Europe, Kazusa Naito, a spokeswoman, said by telephone today. The carrier hasn’t decided how many classes of service will be in the superjumbo, she said.
Obviously a little too early to start holding our breath, but looks like in a little over three years time the market for flights to Japan will start to open up to some serious LCC competition.
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Old Nov 8, 2010, 3:33 am
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ANA will have their own LCC next year with international flights. They are too late to the market.

IMHO ordering only 4-6 380's is a mistake for a LCC. CX recently said they need to order ~10 to justify adding A380 to its fleet as there are so many overheads.

http://www.flightglobal.com/articles...for-large.html
"Ordering just six to eight aircraft is not ideal. You need at least 10 to 15 in order for it to be cost effective in terms of operations, spares, engines and so on. There are many overheads involved in inducting a new aircraft into the fleet. That's why we must consider the decision very carefully," he says.
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Old Nov 9, 2010, 1:36 am
  #3  
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Originally Posted by JALPak
ANA will have their own LCC next year with international flights. They are too late to the market.
Not sure I agree. AFAIK ANA's LCC is going to concentrate on Asia, while Skymark's saying they're aiming for long-haul. And like any legacy carrier spinning off an LCC, ANA's going to have a hard time not stepping on its own toes, while Skymark won't be similarly constrained.

IMHO ordering only 4-6 380's is a mistake for a LCC. CX recently said they need to order ~10 to justify adding A380 to its fleet as there are so many overheads.
Skymark is not CX, and I'm still pretty impressed that they claim to be able to rustle up the $1b+ needed to swing the deal!
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Old Nov 9, 2010, 7:28 am
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Originally Posted by jpatokal
Tokyo Stock Exchange, NOV9

SKYMARK AIRLINES: 793 (-150)
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Old Nov 9, 2010, 10:29 am
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Get ready for the A380, Ibaraki International Airport!!!
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Old Nov 9, 2010, 12:59 pm
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Originally Posted by RichardInSF
Get ready for the A380, Ibaraki International Airport!!!
Yep, sure it is. I can't wait to see newest A380 will come online in year of 2014 timelines. I am looking forward to see Skymark is coming to USA. Skymark doesn't know for which the specific routes to be announced for operates A380 service.
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Old Nov 9, 2010, 3:41 pm
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Skymark? My money is that this isn't going to much further than hot air.
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Old Nov 9, 2010, 5:03 pm
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Wouldn't this be better in one of the airline forums as it has nothing to do with travel and dining ! ^
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Old Nov 9, 2010, 7:44 pm
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Originally Posted by jpatokal
Not sure I agree. AFAIK ANA's LCC is going to concentrate on Asia, while Skymark's saying they're aiming for long-haul. And like any legacy carrier spinning off an LCC, ANA's going to have a hard time not stepping on its own toes, while Skymark won't be similarly constrained.


Skymark is not CX, and I'm still pretty impressed that they claim to be able to rustle up the $1b+ needed to swing the deal!
NH's LCC will be a brand new company set to compete with those LCCs. It is expected to step on its own toes esp there's a high price difference! But better lose the business to its sister than someone else By the time Skymark flies internationally, NH's LCC will be well established. But I believe they are focusing on regional routes instead of long-haul ones like Skymark's strategy on flying to the US and Europe.

Yes they are not CX, but there are still a lot of overheads on introducing a new aircraft type to the fleet. As a LCC, it's best to minimize the number of aircraft types in its fleet. Just not sure if adding an aircraft that doesn't fit every route (due to lack of load) is going to be wise. Might be wiser to order say 787 or A350 which they could use on all of their international routes.
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Old Nov 10, 2010, 3:45 am
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Originally Posted by JALPak
But better lose the business to its sister than someone else
I think we all understand creative destruction... it's just that Japanese companies seem culturally indisposed to it. (Of course, this is true in most economies, so Japan is the same as everywhere else ... but more so).

So even if the board at NH tell me that they really get this and they really, really want to create a real LCC, I don't believe them any more than I believe Dentsu when they tell me they will launch an innovative agency model or MUFG when they tell me they will introduce new offerings to shake up the finance industry.

Could happen in a different petri dish. Not happening here.

Last edited by jib71; Nov 10, 2010 at 3:50 am
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Old Nov 12, 2010, 3:12 pm
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http://www.reuters.com/article/idUSTOE6AB08420101112

They are planning to fly to London, Frankfurt, New York...and plan to operate 15 A380's

Turns out from the parts inventory point of view it will be cost efficient to introduce this new aircraft into their fleet. But do they really have THAT many routes with loads that can support A380
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Old Nov 13, 2010, 3:12 am
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Originally Posted by Reuters
The company shrugged off concerns about how it will finance the purchase on Friday, saying it would pay cash for the first two A380s and lease two more.
At the current list price of about US$ 320 millions, 2xA380 costs roughly US$ 640 millions. Which means, at a minimum, 6,4 millions of US$ 100 notes, weighing roughly 6,5 tons.

Alternatively, they could pay in yens - a JPY 10 000 note is at current rate worth about US$ 120, so about 5,3 million notes. Or in euros - an €500 note is close to US$ 700, so slightly over 900 000 notes, weighing less than one ton.
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Old Dec 21, 2010, 2:12 pm
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Skymark Up to 15 A380

Hi All,

Skymark is up 15 A380 is on orders and here the linked:

http://www.easybourse.com/bourse/int...age-da380.html

Sorry for speaking another foreign languages. Can you guys try do translations into English for me, please?

Thanks all.

Regards
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Old Dec 23, 2010, 8:55 pm
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using google translate came up with the following:

Airbus: Skymark Airlines could order more A380s
Posted December 21, 2010 Copyright © 2010 Dowjones

TOKYO (AFP) - Skymark Airlines, the first Japanese airline that plans to integrate four Airbus A380s in its fleet from 2014, could total up to fifteen thereafter to extend its international network, said Tuesday its chairman.

November 8, this small company, which does for the moment that domestic routes, has reached an agreement in principle with the European aircraft manufacturer Airbus for the acquisition of six A380s, including two optional one valued at over $ 2 billion at list prices.

At a press conference Tuesday in Tokyo, Shinichi Nishikubo assured that his company could pay for these very large aircraft.

"I have no concerns about the funds to buy the A380 because business Skymark are quite good," he said, without going into detail.

But he acknowledged he might have to revise its plans if the dollar strengthened against the Japanese currency, to reach 100 yen, against about 84 now. "I am with great attention to the exchange rate," he said.

Old founder of a company service provider to the Internet, Zero, Mr Nishikubo, 55, has even added that he hoped to increase to 15 the number of Airbus A380 and open lines not only to the USA U.S. and Europe but also to Australia and Singapore "if our development plan succeeds."

"We could take a decision on our future purchases as soon as we introduced our first A380 in 2014," he told AFP.

Skymark Airlines, operating only since 1998, currently offers domestic routes, offering fares lower than those of the two major Japanese carriers, Japan Airlines (JAL) and All Nippon Airways (ANA).

She currently has a fleet of 17 Boeing 737 small shareholders.
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Old Dec 25, 2010, 8:39 pm
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Originally Posted by KIXman
using google translate came up with the following:
Thanks for your helps to do translations into proper English. Appreciated it for your efforts.

I'm pretty sure if Skymark will orders more than 15 A380s. They will have to starts routes development. Skymark will have consider to starts new routes for NRT-LAX/SFO/LAS/PHX/JFK. Whether if Skymark will have some orders A350XWB or 787 Dreamliners. It should be done extremely very well. If there is enough the financial. Skymark can have orders some 77W or A380-900R.
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