Skymark Airlines

Japan’s homegrown independent LCC, Skymark Airlines, upgrades full-year profit forecast

Skymark Airlines, Japan’s third largest carrier, expects its profitable run to continue in the current fiscal year through Mar-2012 with the carrier, like Japan Airlines, upwardly revising its operating profit forecast for the full year. The LCC has revised its profit forecast upward by 21% to JPY17 billion (USD221.2 million) after reporting a 55% year-on-year increase in operating profit in the six months ended 30-Sep-2011, amid a positive outlook for the current quarter.

2011 has been a busy year for Skymark Airlines, which earlier in the year placed a landmark order for six A380s, as part of its ambitious growth plans, moving it away from the small (and successful) domestic quasi-LCC model to a long-haul international carrier. The carrier’s expansion strategy is unique in that it will operate two very different models. Long-haul international services will utilise A380 equipment configured in a low-density seat configuration. Domestic and short-haul services will continue to be operated with economy-only B737 aircraft and no-frills service, with the carrier recently launching its 'Narita Shuttle' service as part of its domestic expansion.

Airlines charging a premium for services from Tokyo Haneda Airport

Airlines are charging a considerable premium on Asian services from Tokyo Haneda compared to the city's former exclusive international gateway, Tokyo Narita, driven by increased demand from business passengers as Haneda opens up to new services. The price gap has widened since Haneda opened its new international terminal and fourth runway in late Oct-2010. The convenience factor (Haneda enjoys greater proximity to downtown Tokyo) is driving pricing, making it a key facility for incumbent airlines All Nippon Airways and Japan Airlines to defend.

Tokyo Haneda, Japan’s busiest airport, Asia’s second busiest (after Beijing), now accounts for 20% of all seats on international services from the Tokyo area. Tokyo Narita has an 80% share and is the world’s 20th largest airport by system ASKs, with a considerably larger proportion of long-haul international services than Haneda.

Jetstar-JAL LCC, "Jetstar Japan" to commence service by Dec-2012

Japan Airlines Corp, Jetstar Airways and Mitsubishi Corp confirmed plans to establish a LCC JV in the Japan market by Dec-2012. Jetstar Japan will be Japan's third new LCC announced this year, following hard off the heels of All Nippon Airways' announcement last month that it plans to establish a JV with leading low cost airline AirAsia, AirAsia Japan, in addition to its previously announced LCC, Peach. The JAL JV would add another piece to the complex jigsaw that is now transforming the Asian airline market. The potential market growth as these successive ventures are introduced can be measured in the hundreds of millions of new passengers. Removal of highly restrictive regulatory conditions and the scale of opportunities as new city pair market options emerge mean literally that the sky is the limit for growth upsides.

Skymark Airlines increases A380s orders to six as part of ambitious growth plans

Skymark Airlines placed an order for two more A380 aircraft at the Paris Air Show, bringing to six the number of A380s ordered by the Japanese LCC. The aircraft forms part of the carrier’s ambitious growth plans over the next few years which will move it away from the small domestic LCC model to a long-haul international carrier operating A380 equipment.

Asia's first time flyers the big winners as Paris Air Show PR juggernaut winds down

The major beneficiaries of this week’s frenetic (public relations) activity just outside Paris live half a world away. They are Asia’s emerging travellers – the millions that have never stepped inside an aircraft, but for whom air travel is becoming attainable. That opportunity took a major step forward as Asian carriers – many of whom the world had never heard of a decade or even five years ago – stepped up in front of the world’s media to order narrowbodies for the mass markets they see blossoming at home.