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Skymark Airlines emerges from bankruptcy with final repayment

Skymark Airlines has closed its rehabilitation proceedings, following a final repayment to creditors.

"In light of the fact that we have performed the additional (final) repayment of the rehabilitation claims and are expected to eventually complete the repayment of all rehabilitation claims, the Tokyo District Court issued an order revoking the supervision order and closing the rehabilitation proceedings for Skymark today," says the Japanese carrier in a statement on 28 March.

The airline says that it is "grateful" to be able to close the rehabilitation proceedings "within just one year and a few months" but adds that this does not mean its rehabilitation is complete.

"Indeed, we will continue to make every effort to build a firm management foundation for our business with flight operations as our first priority to fully regain your trust," it adds.

The airline also released a management plan for 2016 to 2018, where to aid its turnaround, it will undertake several key initiatives. These include to "improve its profit structure", "restructure its maintenance organisation", as well as the "expansion of medium and long-term routes and equipment".

Skymark is forecasting an operating profit of Y1.5 billion ($13.2 million) and revenue of Y70 billion for the financial year ending 31 March. Come fiscal 2018, the company aims to bring in Y7 billion in operating profit and Y80 billion in revenue.

The Tokyo Haneda-based airline filed for bankruptcy protection in January 2015 after it was saddled with a "burden" of dollar-denominated lease payments, notably on its Airbus A330 fleet, as the Japanese yen depreciated rapidly. It also incurred a penalty of Y83 billion for cancelling its order of six Airbus A380s place earlier in 2011.

In September 2015, the carrier received an Y18 billion recapitalisation from its sponsors.

All Nippon Airway's parent company, ANA Holdings, took a 16.5% stake in Skymark as part of the budget carrier's rehabilitation. Private equity firm Integral Corporation meanwhile took a 50.1% stake, while UDS Airlines Investment has the remaining 33.4% stake.

Flightglobal’s Fleets Analyzer lists Skymark as currently operating 26 Boeing 737-800s and one Cessna 510 Mustang.

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