Tony Fernandes: “I think We Lost Skymark”

24th Apr 2015

Bankrupt Japanese low-cost carrier Skymark Airlines will not become a part of Air Asia, according to the Malaysian carrier’s Chief Executive Officer Tony Fernandes.

Talking about this for CNBC on Sunday at the World Economic Forum in Jakarta, Indonesia, Fernandes said:

We were really interested in Skymark, but I don’t think it’s going to happen. We had a look at it but I think we lost that… it’s complicated, so we don’t think our suggestion is going to go through.

Instead, another Japanese carrier, ANA, will take a 20 percent stake in Skymark, while the private equity firm “Integral” will take the majority part.

Japan currently has only two major carriers, ANA and Japan Airlines.

About this, Fernandes said:

I don’t think that’s good for Japan. They’re going to end up with two airlines, really. And so hopefully Japan can inject a little more choice.

Skymark was Japan’s top low-cost carrier, but it had to file for bankruptcy late in January this year. The company said their financial problems were a result of a dispute they had with Airbus over down payments as well as a weaker yen.

As of 1^st March, the airline is no longer on the Tokyo Stock Exchange.

Air Asia Plan for Japan Routes Continues

Despite being short on a Skymark deal, Air Asia is still determined to start its own Japan routes beginning on 2016, Fernandes said. So far, certification by the Japanese regulators has slowed the launch, as it is taking longer than the Malaysian airline anticipated. CEO of Air Asia however is confident the launch will transpire.

Fernandes said:

We’re going through the application process now, and we’re very confident in our model. It’s taken longer, because I think there are a few more airlines, and the regulators want to go through all their rules and regulations, but we’re on schedule to start early next year.