Airline News
ANA to lead Skymark turnaround
August 10th 2015
ANA Holdings, parent of All Nippon Airways (ANA), last week won creditor backing to lead the rehabilitation of bankrupt Skymark Airlines, blocking a plan that would have seen U.S. carrier, Delta Air Lines, as its guarantor. The decision gives ANA access to Skymark's 36 Haneda slots, helping it cement its domestic dominance over Japan Airlines (JAL). Read More »
For debt holders seeking to recoup their money, ANA was regarded as "less risky" than Delta, a creditor told Reuters ahead of the decision, given ANA had discussed business plans with Skymark and had a proven track record of running several airlines in Japan. Airbus, Skymark's second largest creditor, ultimately sided with ANA, people with knowledge of the matter disclosed to Reuters, despite previous disagreements between the airline and the manufacturer.
More than 170 creditors voted on the proposals in two rounds - the first weighted by amount owed, while the second gave each creditor an equal vote. ANA, which has offered to buy 16.5% of Skymark, won 60.5% of the first round and more than three quarters of the second.
For Atlanta-headquartered Delta, the decision was a lost opportunity to gain a bigger presence in Japan where it does not have an alliance partner, unlike United Airlines and American Airlines, which have local partners in ANA and JAL, respectively. The proposition that Delta take equity in Skymark was raised by Intrepid Aviation, Skymark’s largest creditor, after the lessor fell out with ANA over a failed deal to lease Skymark’s A330 fleet.
Barring any upheld objections from creditors, Integral's ANA-sponsored turnaround plan will be implemented after 30 days. Tokyo District Court has recognized Skymark liabilities of 152.2 billion yen ($1.2 billion) while another 157 billion yen remains under dispute.
