Skymark Airlines inaugurates Airbus A330 service.

On June 14th, Skymark Airlines (BC/SKY) inaugurated Airbus A330 operations with flight BC003, service from Tokyo/Haneda (HND/RJTT) to Fukuoka (FUK/RJFF). Flown by A330-343E JA330B, the flight departed Haneda at 0758 JST, 18 minutes behind schedule, and took off at 0817 with a load of 262 passengers, eight flight attendants, and two pilots. It touched down at Fukuoka at 0944 and came to a stop at the gate at 0954, 19 minutes behind their published arrival time.

Airbus A330-343E JA330B is seen being pushed back from the gate at Haneda for its inaugural revenue flight on Saturday, June 14th. (Photo: Aviation Wire)

Japan's third largest carrier has configured their brand-new A330s in a 271-seat Green Seat all-premium layout (Skymark Airlines' first two Airbus A330s delivered.), boasting a generous 38-inch (96.5 centimeters) seat pitch at seven-abreast (2-3-2), similar to Japan Airlines' (JL/JAL) Class J domestic business class product. However, it still represents a 53% capacity increase compared to their Boeing 737-800s, which seat 177 in their all-economy cabin. So far, Skymark has not been charging a premium for A330-operated flights.

The skirt length of the controversial one-piece short-skirt uniforms (Miniskirt turbulence at Skymark Airlines?) has been extended by about 10 centimeters in response to critics. The 1960s-style uniform is being worn by flight attendants just on the widebody Airbus for the first six months on each route it is introduced on as part of a campaign to promote the new product.

A Skymark flight attendant wearing their fresh new mini-skirt uniform performing in-flight service. Skymark offers a buy-on-board program, however, their menu is simple and products are much more reasonably priced compared to LCCs. (Photo: Aviation Wire)

Skymark's President and CEO Shinichi Nishikubo, who was also present on the inaugural flight, told reporters he was "filled with deep emotions," when asked how he felt reaching the historic day after it was forced to delay four times, pushing the inauguration back by almost three months (Skymark delays Airbus A330 launch again; now June 14th.). Having had to become the first A330 operator in Japan, they had underestimated the amount of work and time it takes to go through the various regulatory hurdles and the country's relatively slow process of certification. Making an in-flight announcement himself, Mr. Nishikubo said "Please sit back, recline, and experience the comfort," welcoming passengers.

The spacious seven-abreast (2-3-2) layout on Skymark's Airbus A330. (Photo: Aviation Wire)

The airline currently has two A330-300s, both of which are on lease from Intrepid Aviation, and plans a total of 10 by September 2015. JA330A entered service on the same day with flight BC009. Their third example is expected in August and three more will arrive by the end of 2014, while the remaining four are to be delivered by September 2015. With the acquisition of their third example, all Haneda – Fukuoka flights will be operated by A330s, and Skymark plans to expand A330 operations to Sapporo/New Chitose (CTS/RJCC) in October and to Okinawa/Naha (OKA/ROAH) in February or March next year.

Along with the all-premium Airbus A380s they will start receiving later this year (Skymark's Airbus A380 to be delayed up to six months.), the all-premium A330s are in line with Skymark's strategy to meet the demand for affordable premium travel (Skymark posts loss but optimistic with strategy tweaks.) and their survival plan to create a niche of their own and avoid being caught in between the full-service carriers and the growing LCCs.

Source: Aviation Wire, June 14th. (in Japanese)
Source: Aviation Wire, June 15th. (in Japanese)
Source: Aviation Wire, June 16th. (in Japanese)

Skymark Airlines' first two Airbus A330s delivered.

On February 28th, Airbus announced that Skymark Airlines (BC/SKY) had taken delivery of its first two Airbus A330s simultaneously. The first, A330-343E JA330A, has already departed Toulouse (TLS/LFBO) and is currently on its way to Japan. It is expected to arrive at Tokyo/Haneda (HND/RJTT) in the morning of March 2nd, local time. Their second, JA330B, is expected to follow shortly.

Airbus A330-343E JA330A departs Toulouse on a test flight. (Photo: Airbus)

Seating 271 in an all-premium (akin to premium economy) 'Green Seat' configuration, Skymark's A330s are planned to enter service on the highly-competitive Haneda - Fukuoka (FUK/RJFF) route on April 18th (Skymark to introduce the Airbus A330 on April 18th.). The Japan Civil Aviation Bureau (JCAB) issued a Certificate of Airworthiness (CofA) for the Airbus A330-300 on January 22nd. Skymark, which has become the first Japanese A330 operator, will spend the next month and a half to have its staff get acquainted with the new type.

Skymark A330s' Green Seats are in seven-abreast (2-3-2) layout. (Photo: Airbus)

Its third, JA330D, is expected in July and two more will arrive by the end of 2014, while the remaining five will be delivered by September 2015 for a total of 10. Skymark plans to expand A330 operations to Okinawa/Naha (OKA/ROAH) in October and to Sapporo/New Chitose (CTS/RJCC) by April next year. Along with the all-premium Airbus A380s they will start receiving later this year, the all-premium A330s are in line with Skymark's strategy to meet the demand for low-fare premium travel (Skymark posts loss but optimistic with strategy tweaks.).

Meanwhile, Airbus has taken the opportunity to release a video clip on YouTube titled 'The making of... Skymark Airlines' first A330'. Enjoy.

Source: Aviation Wire, February 28th. (in Japanese)

Skymark posts loss but optimistic with strategy tweaks.

Skymark Airlines (BC/SKY) posted results for the first nine months (April to December) of fiscal year 2013; net income was 230 million JPY (94.4% decrease from the same period in 2012), total revenue was 65.3 billion JPY (0.8% decrease), and an operating loss of 181 million JPY (same period in 2012 saw a 6.29 billion JPY operating profit). It is expected to post the first full-year loss in five years for FY2013.

As majors All Nippon Airways (NH/ANA) and JAL continue to cut costs and come up with more aggressive measures, and LCCs now establishing a firm foothold in the core domestic markets, Skymark has been tweaking its strategy to avoid being caught in between the two. 

Boeing 737-8HX(WL) JA73NP at Haneda. (Photo: Ryosuke Yano)

In 2013, both ANA and JAL started offering tickets up to six months in advance with discounts around 70 to 80%. Skymark still offered less-expensive fares, but were only available from two months in advance, so with early-bookers going to the majors, these promotional fares didn't sell out as quickly as it used to, eventually hurting yields. 2014 will see them offer more advance tickets. Capacity has also been dumped in the 'bread-and-butter' Tokyo - Fukuoka market; Tokyo/Haneda (HND/RJTT) - Fukuoka (FUK/RJFF) sees JAL flying 17 round-trips, ANA flying 18, Skymark providing 11, and Star Flyer (7G/SFJ) with 10, while the Tokyo/Narita (NRT/RJAA) - Fukuoka route also sees three times daily each with ANA and JAL, and five daily with Jetstar Japan (GK/JJP). Again, these hurt yields. Skymark's answer is the Airbus A330 (Skymark to introduce the Airbus A330 on April 18th.) with affordable all-premium seating, akin to JAL's Class J domestic business class product, which often sells out quickly.

The Narita and Ishigaki (ISG/ROIG) markets have been disastrous, with all seven routes from the former bleeding red ink. Narita sees competition from LCCs Jetstar Japan, Vanilla Air (JW/VNL), and soon-to-launch Spring Airlines Japan, but numbers haven't been good for the rivals as well. Skymark's President and CEO Shinichi Nishikubo notes that for domestic services, Narita is "still immature and performing more like a Chiba Airport (and not a Tokyo Airport)", only attracting those who live in the prefecture where Narita is located. As for Ishigaki, it has become a new battleground of a fare war, with Peach Aviation's (MM/APJ) entry and JAL-subsidiary Japan Transocean Air (NU/JTA) lowering fares. In 2014, Skymark will consolidate its Narita network to only Okinawa/Naha (OKA/ROAH), Sapporo/New Chitose (CTS/RJCC), and Yonago (YGJ/RJOH), while the Ishigaki network will be simplified to just Naha.

On the other hand, the rapid devaluation of the JPY resulting from 'Abenomics' increased fuel costs. As for the fleet, the 31-strong Boeing 737 fleet will gradually be reduced to around 24 or 25 by the time its 10th A330 arrives. A previously announced plan to reconfigure its Boeing narrow-bodies with 20 premium seats have been shelved, and Skymark stated that freeing-up its B737s will instead enable them to pursue the charter market, which is relatively under-served, more aggressively. Group tours as well as high school graduation trips are on their minds. Some of their B737s are certified for ETOPS (Extended Twin-engined OPerationS), so charter flights to nearby international destinations such as Guam (GUM/PGUM), which they operated in 2010, are also possible.

Meanwhile, a large hangar Skymark rented at Haneda to open an A330 maintenance base will now be returned, as the carrier has signed an agreement with the European manufacturer for a Flight Hour Services (FHS) components contract. Heavy maintenance will be undertaken in Taiwan. The hangar rent cost them 800 million JPY a year.

Skymark is doing all it can to differentiate itself from the competition and carve out its own niche. What may seem like a dangerous bet configuring domestic A330s and planned international A380s with all-premium seating "is logical", according to Mr. Nishikubo, adding "demand for affordable premium seats is big but supply is small, both for domestic and international". While their 36 precious slots at heavily-regulated Haneda generate roughly 80% of their revenue, the carrier is also building-up operations at its focus cities of Ibaraki (IBR/RJAH), Kobe (UKB/RJBE), Sendai (SDJ/RJSS), and Yonago, opening up new point-to-point routes that would be unprofitable at ANA and JAL's high costs, while also avoiding competition with LCCs (Skymark releases Summer 2014, expects FY2013 loss.). He adds "some LCCs don't seem to care if they make money or not, and we don't want to get into a fare war with them", possibly referring to Jetstar Japan, which was saved from further injections in October 2013 from shareholders JAL and Qantas Airways (QF/QFA) after hefty losses and running low on cash reserves.

As the first child of Japan's deregulation, and the only airline still truly independent from the heavyweights of ANA and JAL (excluding some commuter carriers), Skymark is definitely the most interesting Japanese carrier to watch. After all, Skymark has managed to break into the duopolistic domestic market, and its growth is what forced the majors to bring in LCCs, which otherwise probably still wouldn't have existed in Japan.

Source: Aviation Wire (in Japanese)

Skymark to introduce the Airbus A330 on April 18th.

Skymark Airlines (BC/SKY) has announced that their new all-premium Airbus A330 will enter service on April 18th. Initial operations will see the type shuttling on the lucrative but highly-competitive Tokyo/Haneda (HND/RJTT) - Fukuoka (FUK/RJFF) route five times a day. The European wide-body will gradually be expanded to Okinawa/Naha (OKA/ROAH) around October, and to Sapporo/New Chitose (CTS/RJCC) by April next year.

'Green Seats' and short-skirt flight attendants on Skymark's Airbus A330. (Photo: Aviation Wire)

Haneda - Fukuoka from 11 to 10 daily; 5 to be operated by new 333. *April 18 - May 31.
BC003 HND 0740 – 0935 FUK 333 Daily
BC007 HND 0920 – 1110 FUK 73H/738 Daily
BC009 HND 1115 – 1305 FUK 333 Daily
BC013 HND 1235 – 1430 FUK 333 Daily
BC015 HND 1345 – 1540 FUK 73H/738 Daily
BC017 HND 1505 – 1700 FUK 73H/738 Daily
BC019 HND 1605 – 1800 FUK 333 Daily
BC021 HND 1725 – 1915 FUK 333 Daily
BC025 HND 1835 – 2030 FUK 73H/738 Daily
BC027 HND 2000 – 2155 FUK 73H/738 Daily
BC004 FUK 0900 – 1035 HND 73H/738 Daily
BC008 FUK 1015 – 1150 HND 333 Daily
BC010 FUK 1150 – 1325 HND 73H/738 Daily
BC012 FUK 1345 – 1520 HND 333 Daily
BC016 FUK 1510 – 1645 HND 333 Daily
BC018 FUK 1620 – 1755 HND 73H/738 Daily
BC020 FUK 1740 – 1915 HND 73H/738 Daily
BC022 FUK 1845 – 2020 HND 333 Daily
BC024 FUK 1955 – 2130 HND 333 Daily
BC026 FUK 2110 – 2245 HND 73H/738 Daily 

Skymark is now expected to take delivery of their first example, A330-343E JA330A, on March 1st, shortly to be followed by their second. Six are to be delivered by year's end and the remainder will arrive by September 2015. The new A330s are configured with 271 'Green Seats' with a 96.5-centimeter (38 inches) seat pitch at seven abreast (2+3+2), which are akin to Japan Airlines' (JL/JAL) Class J domestic business class product. To attract attention, the eight flight attendants on board the A330s will wear one-piece short-skirt uniforms for the first six months on each new route. 

Source: Skymark Airlines (PDF; in Japanese) 

Skymark starts selling Green Seats.

On January 1st, Skymark Airlines (BC/SKY) started selling 'Sky Bargain 60' tickets, which are promotional fares that can be purchased up to 60 days prior to the travel date. It is now available for travel from June 1st onwards.

At the same time, Skymark has started selling tickets for its all-premium 271-seat Airbus A330s that will start service at the end of March. Called 'Green Seats', these are more like premium economy and akin to Japan Airlines' (JL/JAL) Class-J product. 'Green' was chosen since the Shinkansen's (Japanese bullet train) business class seats are called Green Class, which caters mostly for business travelers, and it represents Skymark's increased focus on the premium market. A one-way Tokyo/Haneda (HND/RJTT) - Fukuoka (FUK/RJFF) Green Seat ticket bought with Sky Bargain 60 has been fixed at 7,800JPY to 10,900JPY, whereas JAL's Class-J bought 60 days in advance costs around 13,070JPY to 20,570JPY.

Sky Bargain 60 for other routes include Haneda - Sapporo/New Chitose (CTS/RJCC) from 7,800JPY to 11,900JPY and Haneda - Okinawa/Naha (OKA/ROAH) from 8,800JPY to 13,900JPY, which are almost half of what one would pay for a similar service with All Nippon Airways (NH/ANA) or JAL.

For the first time, Skymark will also introduce a mileage program, though plans have been delayed from the planned January launch. Its first Airbus A330-300, JA330A, is currently undergoing test flights in France in preparation for delivery later this month. 

Source: Aviation Wire (in Japanese)