Skymark Airlines

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Skymark Airlines
スカイマーク
Sukai Māku
Skymark Airlines Logo.svg
IATA
BC
ICAO
SKY
Callsign
SKYMARK
Founded 1996
Commenced operations 19 September 1998
Focus cities Tokyo Haneda Airport
Kobe Airport
Naha Airport
New Chitose Airport
Fukuoka Airport
Fleet size 35
Destinations 14
Headquarters Haneda Airport, Ōta, Tokyo, Japan
Key people Masakazu Arimori (President and CEO)
Revenue ¥86.0 billion (FY March 2014)[1]
Operating income (¥2.5 billion) (FY March 2014)[1]
Net income (¥1.8 billion) (FY March 2014)[1]
Total assets ¥78.7 billion (March 2014)[1]
Total equity ¥44.7 billion (March 2014)[1]
Employees 2,293 (June 2013)[2]
Website www.skymark.co.jp/en/index.html

Skymark Airlines Inc. (スカイマーク株式会社 Sukaimāku Kabushiki-gaisha?) TYO: 9204 is a low-cost airline headquartered at Tokyo International Airport (Haneda) in Ōta, Tokyo, Japan,[3] operating scheduled passenger services within Japan. In addition to its base at Haneda, Skymark is the dominant carrier at Kobe Airport[4] and is the only domestic airline operating at Ibaraki Airport north of Tokyo. As of March 2013, its largest shareholder is CEO Shinichi Nishikubo (30.57%).[5]

History[edit]

Skymark Airlines was established in November 1996 as an independent domestic airline after deregulation of the Japanese airline industry and started operations on 19 September 1998.[3] It was originally established by a consortium of investors led by the travel agency H.I.S. and headed by H.I.S. president Hideo Sawada. The airline incurred considerable losses in its first few years of operations. It briefly considered a recapitalization led by Commerzbank but decided not to accept such an investment due to Air Do's issues with banks interfering in management. In August 2003, Sawada invited internet entrepreneur Shinichi Nishikubo to become Skymark's largest shareholder with a personal cash investment of 3.5 billion yen (having made around 9 billion yen from the IPO of his internet company in 2000).[6]

On 11 December 2003, Skymark announced that it expected a profit of 470 million yen for the half-fiscal year ending on 31 October, the first profit made since the airline began operations.[7]

Skymark operated seven Boeing 767-200 and Boeing 767-300 widebody aircraft between 1998 and 2005. Some 767 fuselages were painted in special "billboard" liveries advertising third party companies, including Yahoo Japan,[8] Microsoft[9] and USEN.[10] Under Nishikubo, Skymark began acquiring new Boeing 737-800 narrowbody aircraft in 2005 and eventually retired the 767 from its fleet in 2009.[11] By using more efficient aircraft and systems developed in-house, Skymark attempted to undercut JAL and ANA on costs in order to offer lower fares.[12]

Skymark had a code sharing partnership with Japan Airlines on the Tokyo Haneda-Kobe route from Kobe Airport's opening in 2006.[13] JAL withdrew from Kobe in 2010, while Skymark developed Kobe into a secondary base.[14] Skymark purchased the naming rights for the Kobe Sports Park Baseball Stadium from 2005 to 2010.

Skymark announced in April 2010 that it would commence a "Narita Shuttle" service from Narita International Airport to Asahikawa, Sapporo, Fukuoka, and Okinawa in late 2011 and early 2012.[15]

Shift to premium service[edit]

In November 2010 Skymark announced negotiations with Airbus for an order of four Airbus A380 aircraft and two options, making it the first Japanese airline to order the type.[16][17][18] The airline announced its intent to use the aircraft on long-haul trunk routes out of Narita Airport such as London, Frankfurt, Paris and New York, and that they would be operated in a two-class, 394-seat configuration — with 114 seats in business class and 280 in a premium economy class.[19]

As Skymark began to prepare for international service, it began to face stiff competition from a new group of low-cost carriers in Japan beginning in 2012, particularly from AirAsia Japan (later Vanilla Air) and Jetstar Japan at its Narita base. This led to a reduction in Skymark's frequencies on highly contested routes such as Narita-Sapporo and Narita-Fukuoka, and a refocusing of aircraft on more exclusive routes such as Narita-Ishigaki.[20] Rapid fuel price increases in 2014 exacerbated the situation, and Skymark recorded its first net loss in five years for the fiscal year ended March 2014.[12]

Skymark attempted a more competitive domestic offering by executing leases for seven Airbus A330-300 aircraft in July 2012.[21] Skymark announced that it would outfit these aircraft in a 271-seat single-class premium configuration with 38-inch seat pitch and 22-inch seat width, tentatively called "Green Seats" and comparable to the domestic "Class J" offering on Japan Airlines,[22] to win market share among business travelers on the key domestic trunk routes from Tokyo to Fukuoka and Sapporo.[23] Skymark also had plans to install "Green Seat" cabins on its 737 fleet to create a 2-class configuration[24] but cancelled the plan in early 2014 in favor of keeping a single-class 737 fleet for competition with other LCCs.[25]

Somewhat controversially, Skymark announced that A330 flight attendants would wear miniskirt uniforms, in contrast to Skymark's usual polo shirt uniforms, for the first six months of operation of each route.[26] The Japan Federation of Cabin Attendants publicly complained about the idea, claiming that the uniforms were unsafe to the women wearing them and would lead to harassment and objectification.[27]

Restructuring and bankruptcy[edit]

In early February 2014, Skymark announced that it would downsize the Narita operation to only three destinations (Sapporo, Yonago and Okinawa). Nishikubo stated that the base lost money in every month except August and that all LCCs were under pressure there. He also expressed some reservations about the A330 fleet plan, stating that while the airline had funding in place for the first two aircraft, the third and subsequent deliveries could be impacted by the performance of Skymark's domestic operation as well as the success of its initial international service. Skymark planned to re-deploy 737s from the Narita and Haneda bases for charter services to destinations such as Guam. [28]

Airbus completed Skymark's first A380 in April 2014 and sent the aircraft to Germany for cabin installation.[29] In July, Airbus announced that it had terminated Skymark's A380 order, citing concerns over the airline's ability to fund the purchase in light of its poor financial performance. Nishikubo complained the airline was not given the opportunity to revise the contract, but simply received a fax notifying it of the termination.[30] After negotiations, Airbus sued Skymark for damages in a London court; it was reported that Skymark had already paid Airbus 26.5 billion yen for the aircraft and could face up to 70 billion yen in penalties.[29]

As the Airbus dispute lingered, Skymark pursued new sources of cash. It announced in November 2014 that it was exploring a cooperative relationship with Japan Airlines under which Skymark's 36 daily round trips to and from Haneda Airport would be code shared with JAL, subject to approval by the Ministry of Land, Infrastructure and Transport.[31] Skymark initially pursued JAL due to a perception that JAL could not threaten Skymark's independence; the terms of JAL's bankruptcy restructuring prevented it from making an investment in Skymark. However, the Japanese government pressed Skymark to make the codeshare trilateral with both JAL and ANA, reflecting the ruling Liberal Democratic Party's preference for ANA. Skymark also attempted a sale and leaseback of over 1 billion yen in equipment as a cash-raising measure, negotiating with a JAL-affiliated trading company and then with an ANA-affiliated trading company. In January 2015, ANA refused to provide financial support to Skymark, and several investment funds also balked at the prospect of injecting cash into the company.[32]

Skymark filed for bankruptcy protection at the Tokyo District Court in January 2015, reporting 71 billion yen in liabilities. It announced that Nishikubo would step down as CEO and would be replaced by CFO Masakazu Arimori.[29] JAL and ANA had reportedly planned to file for domestic codesharing with Skymark during the same week.[12]

Destinations[edit]

Skymark headquarters at Tokyo International Airport
Check-in counters at Kansai International Airport

As of January 2015, Skymark Airlines operated scheduled flights to the following destinations:[33][34]

Former destinations[edit]

Fleet[edit]

A Skymark Boeing 737-800 landing at Haneda Airport (2007)
A Skymark Airbus A330-300 at Fukuoka Airport(2014)

Originally, Skymark had placed an order with Airbus for six A380 'superjumbo' aircraft. The order was recently terminated completely, due to financial reasons of introducing such an expensive airliner. "The Centre for Aviation (CAPA), an airlines consultancy, has warned that Skymark could encounter "significant losses" if it put the A380 into service." [35]

As of December 2014, the Skymark Airlines fleet consists of the following aircraft, with an average age of 3.1 years:[36]

Aircraft In Service Orders Passengers Notes
J Y+ Y Total
Airbus A330-300 5 5 0 271 0 271 Based and fly from Haneda
Boeing 737-800 30 10 0 0 177 177 To be leased from (6) Ryanair, (4) Garuda Indonesia
Total 35 15

Frequent flyer program[edit]

Skymark planned to introduce a frequent flyer program in January 2014 to coincide with the launch of its premium domestic service.[22] They delayed as of December 2013 to focus on preparing for international service in December 2014.[37]

Although Skymark did have its own frequent flyer program as of 2013, it has provided award seats to members of the Delta Air Lines SkyMiles program since June 2011.[38]

References[edit]

  1. ^ a b c d e "2014年3月期 決算説明会". Skymark Airlines. Retrieved 29 January 2015. 
  2. ^ "[会社概要]". Skymark.co.jp. Retrieved 20 July 2013. 
  3. ^ a b "About Us." Skymark Airlines. Retrieved on 8 June 2011.
  4. ^ "神戸空港利用状況(H23....5月)". Retrieved 31 July 2013. 
  5. ^ 日本経済新聞. "9204 スカイマーク(株) (スカイマーク) 企業プロフィル". Nikkei.com. Retrieved 12 December 2013. 
  6. ^ 立木, 奈美 (24 September 2003). "スカイマーク救済の舞台裏/35億円を個人出資した西久保愼一氏の真意". Nikkei BP. Retrieved 9 December 2013. 
  7. ^ "Skymark Airlines Expects First Profits on Half-Year Basis.". Highbeam. 11 December 2003. Archived from the original on 11 June 2011. Retrieved 11 June 2011. 
  8. ^ "Photos: Boeing 767-3Q8/ER Aircraft Pictures". Airliners.net. 20 October 2000. Retrieved 11 January 2013. 
  9. ^ "Photos: Boeing 767-3Q8/ER Aircraft Pictures". Airliners.net. 13 December 1998. Retrieved 11 June 2011. 
  10. ^ "Photos: Boeing 767-3Q8/ER Aircraft Pictures". Airliners.net. 7 December 2002. Retrieved 11 June 2011. 
  11. ^ "Skymark Airlines former fleet at". Airfleets.net. Retrieved 4 August 2012. 
  12. ^ a b c "スカイマーク再生法、拡大裏目 「共同運航」間に合わず". Nihon Keizai Shimbun. 29 January 2015. Retrieved 29 January 2015. 
  13. ^ "New Domestic Airports To Boost JAL’s Domestic Network". Japan Airlines. 30 January 2006. Retrieved 12 December 2013. 
  14. ^ "Skymark #3 in Japanese domestic market; new routes focus on developing Kobe as hub". anna.aero. 8 January 2010. Retrieved 12 December 2013. 
  15. ^ "[プレスリリース:「成田シャトル」構想を発表 成田−旭川・札幌(新千歳)・那覇・福岡まで980円より]". Skymark.co.jp. Retrieved 11 June 2011. 
  16. ^ "Skymark A380 press release" (PDF). Retrieved 4 August 2012. 
  17. ^ 2 August 2012. "Airbus press release regarding Skymark A380 Memorandum of Understanding". Airbus.com. Retrieved 4 August 2012. 
  18. ^ "UPDATE 2-Skymark Airlines orders Japan's first Airbus A380s". Reuters. 8 November 2010. Retrieved 8 November 2010. 
  19. ^ "Skymark May Order 15 Airbus A380s in International Expansion". Bloomberg. 12 November 2010. Retrieved 16 November 2010. 
  20. ^ "スカイマークがLCC対抗策 高級席導入・競合路線減便". 日本経済新聞. 19 July 2013. Retrieved 19 July 2013. 
  21. ^ "INTREPID LEASES SEVEN AIRBUS A330-300 AIRCRAFT TO SKYMARK AIRLINES". Retrieved 8 July 2013. 
  22. ^ a b Yoshikawa, Tadayuki (20 June 2013). "スカイマーク、マイル導入へ 14年1月から". Aviationwire.jp. Retrieved 17 July 2013. 
  23. ^ "スカイマークが全席プレミアムシート機 来春、羽田発着の幹線に". Nihon Keizai Shimbun. 12 June 2013. Retrieved 8 July 2013. 
  24. ^ Yoshikawa, Tadayuki (11 June 2013). "スカイマーク、A330は上級「グリーンシート」のみ 737は2クラスへ". Aviationwire.jp. Retrieved 17 July 2013. 
  25. ^ "スカイマーク、737型機の改装見送り 低価格路線を維持". 日本経済新聞. 12 January 2014. Retrieved 13 January 2014. 
  26. ^ Yoshikawa, Tadayuki (12 December 2013). "スカイマーク、ミニスカ新制服で若さ強調 A330導入キャンペーン". Aviation Wire. Retrieved 12 December 2013. 
  27. ^ Nagata, Kazuaki (10 March 2014). "Skymark’s new uniform riles cabin attendants". The Japan Times. Retrieved 29 January 2015. 
  28. ^ Yoshikawa, Tadayuki (3 February 2014). "スカイマーク、余剰737はチャーター活用 成田縮小、羽田は増便". Aviation Wire. Retrieved 3 February 2014. 
  29. ^ a b c Matsuda, Kiyotaka (28 January 2015). "Skymark Files for Bankruptcy After Failed Airbus A380 Deal". Bloomberg Business. Retrieved 29 January 2015. 
  30. ^ "Deal called off for delivery of Airbus A380 to Japanese airliner". The Japan News.Net. Retrieved 29 July 2014. 
  31. ^ "羽田陣取り、雲の中 「スカイマーク・日航」に国交相慎重". Nihon Keizai Shimbun. 26 November 2014. Retrieved 28 November 2014. 
  32. ^ "Airline pays high price for independence". Nikkei Asian Review. 30 January 2015. Retrieved 30 January 2015. 
  33. ^ "Airport Guide". Skymark Airlines. Retrieved 29 January 2015. 
  34. ^ Yoshikawa, Tadayuki (29 January 2015). "スカイマーク、A330運航停止へ 宮古・石垣は運休". Aviation Wire. Retrieved 30 January 2015. 
  35. ^ https://uk.news.yahoo.com/airbus-declines-report-skymark-drop-a380-171729802--finance.html#PgBUphm
  36. ^ "Skymark Airlines fleet". Planespotters.net. Retrieved 27 May 2014. 
  37. ^ Yoshikawa, Tadayuki (8 December 2013). "スカイマーク、マイル導入を延期". Aviation Wire. Retrieved 9 December 2013. 
  38. ^ "[プレスリリース:スカイマーク デルタ航空 特典交換プログラムへの座席提供について". Skymark.co.jp. Retrieved 11 June 2011. 

External links[edit]