Japanese express freight carrier Galaxy Airlines has confirmed it will halt all operations as a result of growing losses.
Parent company Sagawa Express says in a statement that flight operations will be suspended in October, two years after the carrier started flying. Galaxy operates on domestic routes using two Airbus A300-600 freighters.
Sagawa says in its statement that Galaxy has recorded sizeable losses since it started operating in 2006 and it has large debts. It says it and other shareholders discussed a recapitalisation but no deal could be reached.
Japan’s Ministry of Land, Infrastructure and Transport was formally informed of the planned suspension of operations today. A Japanese news agency first reported on the plans yesterday.
In addition to majority owner Sagawa, which is an express parcel delivery and logistics company, Galaxy has several minority shareholders including codeshare partner Japan Airlines (JAL). JAL owns 10% and codeshares on Galaxy’s services.
Galaxy operates its two A300-600Fs on four domestic routes, namely Osaka-Sapporo, Tokyo-Sapporo, Tokyo-Kitakyushu and Tokyo-Naha.
Source: Air Transport Intelligence news