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AirAsia mulls bid for Japan’s troubled Skymark Airlines

DPA Tokyo | Updated on November 25, 2017

AirAsia, the region’s largest budget carrier, is considering a tender offer for Skymark, Japan’s third largest airline, a report said Tuesday.

The Nikkei business daily quoted sources saying Malaysia-based AirAsia Bhd was in talks with banks to buy the struggling Skymark.

Skymark had ordered six Airbus A380 jets in 2011 to make inroads into international markets, but it has abandoned the plan due to surging fuel costs and intensifying competition.

Airbus SAS terminated the order from Skymark and it may seek more than $700 million from the Japanese carrier for contract violation.

Meanwhile, AirAsia dissolved its partnership with Japan’s ANA Holdings Inc last year after they established a joint venture in 2011.

In July, AirAsia picked Japan’s biggest online retailer Rakuten Inc as one of its partners as it plans to re-enter the Japanese market in 2015.

Published on August 19, 2014

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