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Delta offers to invest in bankrupt Skymark Airlines of Japan

Staff writer |
Delta Air Lines has offered to invest in Japan's bankrupt Skymark Airlines as part of a restructuring plan, according to a Japanese media report.

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The move has the potential to increase competition in Japan by allowing Delta to funnel international travelers via Tokyo to more Japanese cities that Skymark serves.

A deal would give Delta a roughly 20-percent stake, although terms must still be concluded and approved by Skymark's creditors, according to the report by Nikkei Asian Review.

Skymark holds many landing slots at Tokyo's Haneda Airport, which connects to cities throughout Japan and which many travelers prefer to Narita International Airport because it is closer to Tokyo's downtown. Skymark's slots are for domestic routes only.

If the deal succeeds, Delta could attempt to build Haneda as a transit hub for passengers coming off its flights from Los Angeles. Currently, Delta's connecting opportunities are limited because it has no alliance partner in Japan.


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