Delta wants to build its presence in the Japanese market and is looking at an investment in Japan’s bankrupt #3 carrier, Skymark, as a possible move.
Delta is considering an investment in Skymark, and its interest is backed by Intrepid Aviation, an aircraft-leasing firm that is Skymark’s largest creditor. It’s working to get other creditors to join it in voting against a competing plan that would join Skymark with ANA. The creditor’s vote next month. Foreign ownership of Japanese companies is limited to 33%.
One issue that may make the deal a questionable value for Delta is that Skymark’s Tokyo flights mostly use close-in Haneda Airport, which has limited slots for flights. Delta has a slot at Haneda, but all the rest of its flights operate out of Narita, meaning that most passengers flying to Japan on Delta and transferring to Skymark would have a 60+ mile ground trip to make connections.
More detail from USA Today HERE. Photo: 221.20 / Wikimedia
