Skymark exits bankruptcy with eye on international.

On March 28th, Skymark Airlines [BC/SKY] announced that it had completed its corporation revitalization process and received approval to emerge from bankruptcy. At the same time, it also revealed its mid-term plan for FY2016-2018, which includes opening up international routes and targeting 80 billion JPY in total revenues to produce an operating profit of 7 billion JPY by FY2018. Japan's third largest carrier filed for bankruptcy protection on January 29th, 2015 with the Tokyo District Court (Skymark to file for bankruptcy.).

Boeing 737-8HX(WL) JA73NP arrives at Sapporo New Chitose. What future for Skymark? The domestic market is shrinking, while regional international routes are now well-served by LCCs. One solution could be the combination of using midnight international routes at Haneda (which would increase utilization), coming up with a loyalty program, and upgrading their reservations system to enable code-shares with international carriers (which would allow them to leverage their domestic network), though the third would most likely be vetoed by ANA. (Photo: Ryosuke Yano)

Once post-deregulation's most successful start-up to challenge the ANA/JAL duopoly, Skymark was re-launched on September 29th under new ownership (Skymark relaunched with ANA sponsorship.). Integral Corporation holds the majority 50.1%, ANA Holdings has a grip on 16.5%, and UDS Airlines Investment has 33.4%. UDS is a new investment firm jointly owned by Development Bank of Japan (DBJ) and Sumitomo Mitsui Banking, both loyal partners of ANA. ANA Holdings is the parent of Japan's now largest carrier All Nippon Airways [NH/ANA].

Skymark's creditors initially demanded 308.9 billion JPY in total liabilities (Skymark's total debts skyrocket to 300 billion JPY.), however, that was reduced to 154.3 billion JPY after negotiations. Under court protection, the final repayment figure was settled at 16.1 billion JPY. Major creditors included Intrepid Aviation, Airbus, Rolls-Royce, and CIT Aerospace. The U.S.-based aircraft lessor initially sought for 900 million USD for scrapping Airbus 330 leases (Skymark terminates all Airbus A330 leases.) and fought against ANA to sponsor Skymark with Delta Air Lines [DL/DAL] (Intrepid picks Delta to sponsor Skymark.). The European planemaker at first called for 700 million USD for the A380 cancellation (Skymark hopes to settle Airbus A380 penalty in October.), but drastically reduced the amount after ANA agreed to take those A380s (Bye-bye Skymark, Hello ANA Airbus A380?).

Skymark's financial performance is quickly improving, partly helped by lower fuel costs. FY2015 is expected to finish with revenues amounting to 70 billion JPY, producing an operating profit of 1.5 billion JPY. It reverses the airline's results for FY2014, which saw revenues totaling 80.9 billion JPY but translating to a 17.6 billion JPY operating loss. It now targets FY2018 with total revenues at 80 billion JPY with an operating profit of 7 billion JPY, calculating with crude oil at 50 USD per barrel. "We have 26 737s in our fleet, but only use 20 of them at once. Bringing utilization up to 24 aircraft will help increase revenue," said President Masahiko Ichie, adding "Our CASK (cost per available seat kilometer) is 8.5-8.6 JPY, and we're aiming for 8 JPY." During the time frame, a new future aircraft type will also be evaluated.

The revitalized airline also announced plans to go international by FY2018 starting with charter flights. "We need to use FY2016 to further strengthen our balance sheet. We'll carry out feasibility studies in FY2017, and hope to operate the first charters in FY2018," said Mr. Ichie, adding "East Asia and Southeast Asia, as well as Guam and Saipan are likely candidates." Skymark's President also said they are evaluating re-entering markets it withdrew from during its bankruptcy, mentioning Ishigaki [ISG/ROIG], Kumamoto [KMJ/RJFT], Miyako [MMY/ROMY] (Skymark to cut 15% of flights, ground all Airbus A330s.), Sendai [SDJ/RJSS] (Skymark to pull out of Sendai in October.), and Yonago [YGJ/RJOH] (Skymark decides to close Yonago, keep Ibaraki.). "We don't want to axe a new route after only one year," said Mr. Ichie, explaining new destinations would be carefully considered.

Meanwhile, Chairman Nobuo Sayama reiterated that code-sharing with ANA has been indefinitely postponed, as Skymark continues to refuse to adopt ANA's Able-D reservation system. Mr. Sayama believes retaining its own reservations system is key to keeping Skymark independent, and taking up Able-D would essentially relegate Skymark to a de facto puppet of ANA, joining the likes of AIRDO [HD/ADO] (d.b.a. Air Do), Solaseed Air [6J/SNJ], and Star Flyer [7G/SFJ]. "Our performance is improving, so there is no urgent need for code-sharing," said Mr. Sayama, adding "Our arms are open. We have proposed to code-share by placing an interface between ANA's and ours. We don't necessarily need to adopt their system. It's up to ANA."

Mr. Sayama, who also serves as the President of Skymark's largest shareholder Integral, is seemingly determined to limit ANA influence to only maintenance and operational issues, and not with business decisions. The conflict will continue between Integral and ANA as the former's interest lies in keeping Skymark operationally independent until its planned re-listing in 2020 or before, while the latter wants to keep Skymark under its influence for as long as possible to shut out true competition at bread-and-butter Tokyo/Haneda [HND/RJTT]. However, even if code-share talks do not bear fruit, for ANA its investment may have already been worth it, as otherwise a Delta-backed Skymark would have posed a much stronger threat to ANA.

Source: Skymark Airlines, 2016 March 28th. (in Japanese)
Source: Nikkei Shimbun, 2016 March 28th. (in Japanese)
Source: Aviation Wire, 2016 March 28th. (in Japanese)

Skymark loads Haneda red-eye to Okinawa and Sapporo.

On February 19th, Skymark Airlines [BC/SKY] announced that it will operate midnight flights from its Tokyo/Haneda [HND/RJTT] hub to Okinawa/Naha [OKA/ROAH] and Sapporo/New Chitose [CTS/RJCC] between July 1st and October 2nd. The former will operate daily while the latter will fly every day except for Monday. This is the first time a scheduled midnight domestic passenger flight has been loaded from New Chitose since its opening in 1988. All flights will be operated by 177-seat Boeing 737-800s.

Boeing 737-86N(WL) JA73NJ taxies for departure from Haneda. Chairman Nobuo Sayama believes that Skymark would need to go international before the end of the decade as the domestic market continues to shrink. It currently flies 26 737-800s. (Photo: Ryosuke Yano)

The Haneda – New Chitose red-eye round-trip departs Tokyo in the evening, arriving at the Hokkaido capital later in the evening, while the return leg departs New Chitose just past midnight, arriving into Haneda in the early hours. Meanwhile, for the Haneda – Naha red-eye service, both ways will be timed in the early hours of the day and arrive near sunrise at the respective destinations. Fares start from as low as 6,000 JPY, excluding airport service charge.

Flight Schedule:
Haneda – Naha NEW six weekly RED-EYE flight with 737-800.
BC527 HND 0235 – 0520 OKA 73H/738 Tu/We/Th/Fr/Sa/Su *Jul/1 - Oct/2.
BC528 OKA 0305 – 0525 HND 73H/738 Tu/We/Th/Fr/Sa/Su *Jul/1 - Oct/2.
**Skymark will operate up to seven round-trips total per day.

Haneda – New Chitose NEW daily RED-EYE flight with 737-800.
BC731 HND 2130 – 2305 CTS 73H/738 Daily *Jul/1 - Oct/1.
BC732 CTS 0010 – 0200 HND 73H/738 Daily *Jul/2 - Oct/2.
**Skymark will operate nine round-trips total per day.

Last October, local governments and residents near New Chitose agreed to allow up to 30 slot-pairs to arrive and depart between 2200 and 0700 JST in an effort to lure and offer flexibility to cost-conscious airlines. Previously, only six were made available. Until now, the slots have mostly been used by freight carriers or All Nippon Airways' [NH/ANA] passenger aircraft carrying only belly cargo. Koninklijke Luchtvaart Maatschappij [KL/KLM] (d.b.a. KLM Royal Dutch Airlines) was the first to operate scheduled passenger services using the slots, inaugurating Nagoya/Komaki [NKM/RJNA] – New Chitose – Amsterdam/Schiphol [AMS/EHAM] in October 1997. It was suspended in February 2002.

Once post-deregulation's most successful start-up to challenge the ANA/JAL duopoly, the bankrupt airline (Skymark to file for bankruptcy.) is now owned by Integral Corporation, which holds 50.1%, ANA Holdings, with 16.5%, and UDS Airlines Investment, having 33.4% (Skymark relaunched with ANA sponsorship.). UDS is a new investment firm jointly owned by Development Bank of Japan (DBJ) and Sumitomo Mitsui Banking, both loyal partners of ANA.

Code-sharing with ANA, which was planned for Winter 2016/2017, has now been indefinitely postponed, as Skymark continues to refuse to adopt ANA's Able-D reservation system. "ANA told us they would not provide overhaul needed to make two grounded 737s airworthy unless we adopt their system," revealed Nobuo Sayama, Chairman of Skymark and biggest shareholder Integral's President, in an interview, adding "Adopting Able-D would virtually place Skymark under the umbrella of ANA; we would lose our freedom of operation and will not be able to maintain independence. We raised our hands to invest in Skymark because we thought Japan would not have any airline that is run independently." Mr. Sayama has already outsourced overhaul on one of the 737s, and is proposing to place an interface between its system and ANA's to enable code-sharing, which has so far been declined by ANA.

Taking up Able-D would essentially relegate Skymark to a de facto puppet of ANA, joining the likes of AIRDO [HD/ADO] (d.b.a. Air Do), Solaseed Air [6J/SNJ], and Star Flyer [7G/SFJ]. The conflict will continue between Integral and ANA as the former's interest lies in keeping Skymark operationally independent until its planned re-listing in 2020, while the latter wants to keep Skymark under its influence for as long as possible to shut out true competition at bread-and-butter Haneda. With Skymark expected to post a full-year profit for FY2015, ending on March 31st, as performance quickly improves and fuel prices continue to be low, code-sharing with ANA would become less of a priority for Skymark and it would only become more difficult for ANA to tame Skymark.

Source: Hokkaido Prefectural Government. (in Japanese)
Source: Skymark Airlines, 2016 February 19th. (in Japanese)
Source: Hokkaido Shimbun, 2016 February 23rd. (in Japanese)
Source: Bloomberg Japan, 2016 March 3rd. (in Japanese)

Peach Aviation starts Haneda – Seoul.

On February 6th, Peach Aviation [MM/APJ] inaugurated Tokyo/Haneda [HND/RJTT] – Seoul/Incheon [ICN/RKSI] (Peach Aviation announces Haneda – Seoul.). It became their second route from the downtown Tokyo airport after Taipei (Peach Aviation inaugurates Haneda – Taipei.), which was only launched in August 2015, and their 10th international route overall. Meanwhile, Seoul will now be served from three points: Okinawa/Naha [OKA/ROAH], Osaka/Kansai [KIX/RJBB], and Haneda. All flights are operated by 180-seat Airbus A320s.

Airbus A320-214 JA813P at Haneda moments after arriving from Seoul's Incheon as the inaugural flight. Peach's fleet boasts a modest 17 A320s, with the next example not due until October this year. (Photo: Aviation Wire)

The inaugural inbound flight MM1008 departed Incheon on February 5th at 2301 KST with a full load of 181 passengers including an infant, and touched down at Haneda past midnight at 0106 JST. A320-214 JA813P was assigned. Meanwhile, the maiden outbound leg MM1009 departed Haneda on February 6th at 0207 JST carrying 173 passengers including two infants, and arrived at Incheon early in the morning at 0442 KST. There is no time difference between Tokyo and Seoul.

Flight Schedule:
Haneda – Seoul/Incheon NEW 1 daily with A320-200.
MM1009 HND 0200 – 0435 ICN 320 Daily *From Feb/6.
MM1008 ICN 2250 – 0100(+1) HND 320 Daily *From Feb/5.

As with Peach's Haneda – Taipei link, the new service to Korea also uses the heavily-regulated airport's under-utilized midnight slot-pairs reserved exclusively for international flights. Peach added a fourth round-trip between Kansai and Seoul from the same day, and after that aircraft arrives into Seoul, it turns around to become the inbound flight to Haneda. After a brief 60-minute stay, it returns to Seoul as the outbound red-eye flight from Haneda, in time for the first flight of the day from Seoul back to Kansai.

"If you feel like you're up for a Korean barbeque or beauty salon tomorrow, Peach has been providing the answer for those in Osaka. Now we'll be offering that to everyone in Tokyo," said Shinichi Inoue, CEO of Peach, who was present at Haneda on the day. "Travel has become much more affordable and Japan and the rest of Asia are now closer than ever. We're looking forward to opening up our third and fourth international routes from Haneda," Mr. Inoue continued, without naming any destinations. Haneda's current constraints confine Peach to arrivals and departures between 2300 and 0600 only, so the third and fourth will also likely be existing cities on Peach's network if it wishes not to sacrifice aircraft utilization. Hong Kong [HKG/VHHH] and Kaohsiung [KHH/RCKH] would be natural choices.

Source: Aviation Wire, 2016 February 6th. (in Japanese)

Air Do retires the Boeing 737-500.

On January 12th, AIRDO [HD/ADO] (d.b.a. Air Do) officially (but quietly) retired the Boeing 737-500. The last revenue flights were a round-trip from Tokyo/Haneda [HND/RJTT] to Memanbetsu [MMB/RJCM] and back, operated by their ultimate aircraft 737-54K JA8595. It remained in the fleet as back-up equipment for three more days. The penultimate aircraft was 737-54K JA300K, which was retired on January 4th. Their 737-500s seated 126.

Boeing 737-54K JA8595 became the last remaining example. (Photo: Aviation Wire)

Flight HD077 departed Haneda at 1115 JST and arrived at Memanbetsu at 1255, and return leg HD078 left the northeastern Hokkaido city at 1339 and arrived back at Tokyo's downtown airport at 1535. No farewell ceremonies were held, and Air Do has said the aircraft remaining as a back-up equipment as the reason not having any. However, all 737-500s, including this airframe, are being returned to service with All Nippon Airways' [NH/ANA] commuter arm ANA Wings [EH/AKX], subsidiary of Air Do's 14% shareholder ANA Holdings, and they likely preferred to avoid embarrassing its de facto parent.

Boeing 737-54K JA305K Bear Do Dream was retired on November 30th, 2014. (Photo: Air Do)

The 737 Classics are being replaced by Next-Generation 737s supplied by ANA. In December, the Hokkaido-based airline took delivery of their eighth 737-700 on lease from ANA, and the ninth is due from the same source shortly. 737-781(WL) JA16AN became Air Do's eighth of the type, while 737-781(WL) JA14AN will become their ninth. The newer 737-700s seat 144. The longer-range capability of the replacements is allowing Air Do to experiment with international charters (Air Do loads first international charter to Taipei.).

Boeing 737-54K JA8196 Bear Do was retired on March 14th, 2014. (Photo: Air Do)

The 737-500 entered service with Air Do on January 31st, 2008. Two special liveries adorned the type; 737-54K JA8196 Bear Do and 737-54K JA305K Bear Do Dream. They were retired on March 14th, 2014 (Air Do retires 'Bear Do'; five Boeing 737-500s remain.) and November 30th, 2014 (Air Do bids farewell to Bear Do Dream.), respectively. This completes their fleet transition program which started in October 2012. Air Do's fleet is now comprised of two 767-300ERs, two 767-300s, and eight 737-700s, with their ninth joining shortly.

Source: Air Do @ Facebook.
Source: Aviation Wire, 2016 January 9th. (in Japanese)

Peach Aviation announces Haneda – Seoul.

On November 11th, Peach Aviation [MM/APJ] revealed that they will commence Tokyo/Haneda [HND/RJTT] – Seoul/Incheon [ICN/RKSI] on February 5th, 2015. It will become their second route from the downtown Tokyo airport after Taipei (Peach Aviation inaugurates Haneda – Taipei.), which was only launched in August, and their 10th international route overall. On the same day, they are also adding a fourth round-trip between Osaka/Kansai [KIX/RJBB] and Seoul.

Airbus A320-214 JA817P/F-WWBZ at Toulouse Blagnac. Peach's 17th aircraft will be delivered later this month. (Photo: Tobias Gudat)

Along with Peach's Taipei link from Haneda, the new service will also use the heavily-regulated airport's under-utilized midnight slot-pairs reserved exclusively for international routes. The aircraft for the Seoul – Haneda route arrives into Seoul as the fourth flight from Kansai late in the evening, and turns around for the inbound flight to Haneda. After a brief 60-minute stay, it returns to Seoul as the outbound red-eye flight from Haneda, in time for the first flight of the day from Seoul back to Kansai.

Flight Schedule:
Haneda – Seoul/Incheon NEW 1 daily with A320-200.
MM1009 HND 0200 – 0435 ICN 320 Daily *From Feb/6.
MM1008 ICN 2250 – 0100(+1) HND 320 Daily *From Feb/5.

Kansai – Seoul/Incheon increase from 3 to 4 daily with A320-200.
MM001 KIX 0750 – 0945 ICN 320 Daily
MM005 KIX 1240 – 1435 ICN 320 Daily
MM009 KIX 1815 – 2010 ICN 320 Daily *No ops Feb/29 - Mar/3, Mar/7-10, 14-17, 22-24.
MM011 KIX 2000 – 2155 ICN 320 Daily *From Feb/5.
MM012 ICN 0745 – 0925 KIX 320 Daily *From Feb/6 except Feb/11-26 Thu/Fri.
MM012 ICN 0725 – 0905 KIX 320 Thu/Fri *Feb/11-26.
MM002 ICN 1025 – 1205 KIX 320 Daily
MM006 ICN 1515 – 1655 KIX 320 Daily
MM010 ICN 2050 – 2230 KIX 320 Daily *No ops Feb/29 - Mar/3, Mar/7-10, 14-17, 22-24.

One-way fares for Haneda – Seoul start from 5,680 JPY for a Happy Peach ticket, which includes a 10-kilogram carry-on baggage allowance, and will go on sale on November 18th at 1500 JST. A promotional round-trip 9,000 JPY will be offered for travel between February 16th and March 17th provided the passenger boards both legs on the same day, allowing for a 18-hour stay in South Korea's capital. Kansai – Seoul starts from 5,280 JPY and the new round-trip went on sale today.

Due to regulatory obstacles, Peach so far has a split operation for Tokyo; international routes to Seoul and Taipei leave from Haneda and domestic routes to Fukuoka [FUK/RJFF], Kansai, Sapporo/New Chitose [CTS/RJCC] depart from Tokyo/Narita [NRT/RJAA] (Peach starts Narita to Fukuoka and Sapporo.). Any new domestic flights or daytime international services need to fly from Narita as the Kansai-based LCC does not hold slots for those purposes at Haneda. Seoul becomes Peach's second international destination after Taipei to be served from three points in Japan; Okinawa/Naha [OKA/ROAH] (Peach Aviation starts Okinawa – Seoul.), Kansai, and Haneda. Will Hong Kong [HKG/VHHH] be the third?

Source: Peach Aviation, 2015 November 11th. (in Japanese)
Source: Aviation Wire, 2015 November 11th. (in Japanese)

ANA's Star Wars Boeing 787 enters revenue service.

On October 18th, All Nippon Airways [NH/ANA] put its first Star Wars-themed aircraft Boeing 787-9 JA873A R2-D2 ANA JET (ANA unveils Star Wars Boeing 787 R2-D2 ANA JET.) in revenue service as flight NH116 from Tokyo/Haneda [HND/RJTT] to Vancouver [YVR/CYVR]. It departed from Spot 110 at 2148 JST, two minutes ahead of schedule.

Boeing 787-9 JA873A R2-D2 ANA JET is being pushed back at Tokyo's Haneda Airport for its inaugural revenue flight to Vancouver. (Photo: Aviation Wire)

ANA has configured the aircraft with 215 seats in a three-class layout; 48 business (staggered 1-2-1), 21 premium economy (2-3-2), and 146 economy (3-3-3) (ANA's international Boeing 787-9 debuts.). Cabin LEDs feature green, blue, and red to represent the epic space opera and John Williams' famous Star Wars music is turned on from departure to taxi and takeoff. Headrest covers along with paper napkins and cups also feature the iconic robot character of the movie.

The economy class cabin of R2-D2 ANA JET. (Photo: Aviation Wire)

The aircraft had carried its first passengers on the previous day serving a scenic charter flight (ANA's Star Wars Boeing 787 flies first passenger flight.). R2-D2 ANA JET will also be deployed on limited scheduled domestic routes on a one-off basis; Haneda to Hakodate [HKD/RJCH] and Miyazaki [KMI/RJFM] on October 20th, to Hiroshima [HIJ/RJOA] and Matsuyama [MYJ/RJOM] on October 22nd, and to Kagoshima [KOJ/RJFK] and Osaka/Itami [ITM/RJOO] on October 31st.

R2-D2 ANA JET Domestic Flight Schedule:
Haneda – Miyazaki one-time on October 20th.
NH603 HND 0840 – 1025 KMI 789 Oct/20
NH608 KMI 1110 – 1245 HND 789 Oct/20

Haneda – Hakodate one-time on October 20th.
NH555 HND 1340 – 1500 HKD 789 Oct/20
NH556 HKD 1550 – 1715 HND 789 Oct/20

Haneda – Matsuyama one-time on October 22nd.
NH583 HND 0725 – 0855 MYJ 789 Oct/22 *CANCELED AS OF OCT/20.
NH584 MYJ 0950 – 1115 HND 789 Oct/22 *CANCELED AS OF OCT/20.

Haneda – Hiroshima one-time on October 22nd.
NH679 HND 1315 – 1435 HIJ 789 Oct/22 *CANCELED AS OF OCT/20.
NH680 HIJ 1520 – 1645 HND 789 Oct/22 *CANCELED AS OF OCT/20.

Haneda – Kagoshima one-time on October 31st.
NH619 HND 0655 – 0850 KOJ 789 Oct/31
NH622 KOJ 0945 – 1120 HND 789 Oct/31

Haneda – Itami one-time on October 31st.
NH027 HND 1400 – 1505 ITM 789 Oct/31
NH032 ITM 1600 – 1710 HND 789 Oct/31

After Vancouver, it will mostly fly Tokyo/Narita [NRT/RJAA] – San Jose [SJC/KSJC] from mid-October to late November, Narita – Seattle-Tacoma [SEA/KSEA] at the beginning of December, and Haneda – Sydney/Kingsford Smith [SYD/YSSY] (ANA announces Haneda – Sydney.) from mid-December. It will later be assigned to Beijing/Capital [PEK/ZBAA], Jakarta/Soekarno-Hatta [CGK/WIII], Munich [MUC/EDDM], and Paris/Charles de Gaulle [CDG/LFPG] as well.

Paper napkins and cups also feature R2-D2. (Photo: ANA)

The five-year Star Wars Project agreement with The Walt Disney Company (Japan) (ANA reveals Star Wars Project.) will take advantage of the release of The Force Awakens, the series' latest episode and the first of the next trilogy, to bolster ANA's brand-awareness in the international arena. Due to overwhelming popularity, ANA has decided to paint two more aircraft in the Star Wars theme (ANA announces Boeing 777 and 767 Star Wars Jets.); one 767-300 is planned for November and a 777-300ER for March 2016.

Source: Aviation Wire, 2015 October 18th. (in Japanese)

*Last edited/updated on 2015 October 26th.

ANA's Star Wars Boeing 787 flies first passenger flight.

On October 17th, All Nippon Airways [NH/ANA] operated a scenic charter flight using Boeing 787-9 JA873A R2-D2 ANA JET, which was unveiled on September 14th (ANA unveils Star Wars Boeing 787 R2-D2 ANA JET.) and had arrived at Tokyo/Haneda [HND/RJTT] on October 2nd after officially being handed over on September 29th. It became the first passenger-carrying flight for the first Star Wars-themed airplane.

Passengers on the scenic flight pose in front of Boeing 787-9 JA873A R2-D2 ANA JET after arriving back at Tokyo's Haneda Airport. Many participants wore costumes of popular characters from Star Wars. (Photo: Aviation Wire)

The sightseeing flight flying from and back to Haneda carried 170 passengers; 49 winners from a photo contest on ANA's website, 25 lucky groups of two who won the draw from 27,315 ANA Mileage Club (AMC) members' applications, and specially-invited guests along with media. R2-D2 ANA JET departed Haneda at 1327 JST and flew over Shizuoka, Nagoya, Miyatsu, Otsu, Hamamatsu, and Oshima, before returning to Tokyo's downtown airport at 1546.

Participants wearing costumes of characters from Star Wars. (Photo: Aviation Wire)

This marks the first time a character from the popular epic space opera appears on the exterior of a commercial aircraft, and the first of three special-themed aircraft featuring Star Wars to be painted by Japan's now largest airline (ANA reveals Star Wars Project.). The stretched Dreamliner is configured with 215 seats in a three-class configuration; 48 business, 21 premium economy, and 146 economy. Headrest covers along with paper napkins and cups also feature the iconic robot character in the series.

A participant dressed up as Darth Vader. (Photo: Aviation Wire)

Its first revenue flight is planned for October 18th as flight NH116 from Haneda to Vancouver [YVR/CYVR]. It will also be deployed to Beijing/Capital [PEK/ZBAA], Jakarta/Soekarno-Hatta [CGK/WIII], Munich [MUC/EDDM], Paris/Charles de Gaulle [CDG/LFPG], San Jose [SJC/KSJC], and Sydney/Kingsford Smith [SYD/YSSY] (ANA announces Haneda – Sydney.). Due to its popularity, ANA has decided to place the aircraft on limited domestic routes on a one-off basis; Haneda to Hakodate [HKD/RJCH] and Miyazaki [KMI/RJFM] on October 20th, to Hiroshima [HIJ/RJOA] and Matsuyama [MYJ/RJOM] on October 22nd, and to Kagoshima [KOJ/RJFK] and Osaka/Itami [ITM/RJOO] on October 31st.

Source: All Nippon Airways Japan @ Facebook.
Source: Aviation Wire, 2015 October 17th. (in Japanese)

Skymark relaunched with ANA sponsorship.

On September 29th, bankrupt Skymark Airlines [BC/SKY] (Skymark to file for bankruptcy.) officially revamped its ownership structure and management. A 100% capital reduction was performed, followed by a 18 billion JPY capital injection together from Integral Corporation, ANA Holdings, and UDS Airlines Investment, which officially became the new owners of the embattled airline, controlling 50.1%, 16.5%, and 33.4%, respectively (Creditors choose ANA/Skymark proposal over Delta/Intrepid.). UDS is a new investment firm jointly owned by Development Bank of Japan (DBJ) and Sumitomo Mitsui Banking, both now long-time partners of ANA Holdings.

Boeing 737-86N(WL) JA73NJ taxies at New Chitose. Skymark intends to retain a fleet of at least 26 baby Boeings. Can Skymark remain independent? Caught in between the incumbent carriers and new LCCs, what market could it pursue outside its bread-and-butter (for now) Haneda? (Photo: Ryosuke Yano)

The former Skymark management, including Chairman Takashi Ide and President Masakazu Arimori, has been entirely replaced by six new executives. Integral's President Nobuo Sayama has become Chairman and Masahiko Ichie of Development Bank of Japan (DBJ) assumed the role of President. Senior Managing Director is Hideo Yaguchi from OCS, an ANA Holdings cargo subsidiary, who will be responsible for general supervision. Manabu Motohashi, the sole person on the board from within Skymark, is Managing Director and Executive Officer, taking responsibility for management planning, overall control for marketing, and information system. Integral's Shigeki Nishioka has become Director and Executive Officer, overseeing finance, accounting, general affairs, human resources, and listing preparation. ANA's Noriyuki Masukawa has been appointed Director to supervise safety operations.
 
At the same time, Skymark signed a binding code-sharing agreement with rival All Nippon Airways [NH/ANA], subsidiary of the bankrupt carrier's now 16.5% owner ANA Holdings, which is the centerpiece of the struggling airline's corporate rehabilitation plan (Skymark gives in to ANA; Japan reverts to duopoly.). Discussions are being held to implement code-sharing on 13 routes; all but three routes out of Tokyo/Haneda [HND/RJTT] and Sendai [SDJ/RJSS], which is being axed at the end of next month (Skymark to pull out of Sendai in October.). Omitted from Haneda are to Fukuoka [FUK/RJFF], Kagoshima [KOJ/RJFK], and Sapporo/New Chitose [CTS/RJCC], where ANA already commands the lion's share of flights and they learned the Japan Fair Trade Commission is unlikely to give a nod.

"We're working towards starting code-sharing in Winter 2016/2017," said Mr. Sayama, adding "We hope to reveal the outline of code-sharing by mid-October." ANA has been pushing Skymark to adopt their Able-D reservations system, which was also taken up by previous ANA-sponsored airlines AIRDO [HD/ADO] (d.b.a Air Do), Skynet Asia Airways [6J/SNJ] (d.b.a. Solaseed Air), and Star Flyer [7G/SFJ]. However, taking up the system meant pricing needed to have consent from ANA, and all income would go into ANA first and then later be transferred to the airlines, virtually making the three quasi-subsidiaries of ANA. Mr. Sayama has said "Nobody can call that independent, so Skymark can't do that." Outgoing Chairman Mr. Ide had also stated that preserving Skymark's own reservations system, handmade by former President and CEO Shinichi Nishikubo, and modifying it to make it compatible with code-shares, instead of abandoning it and wholly-adopting Able-D, is key to keeping Skymark independent from ANA.

Boeing 737-881(WL) JA75AN takes off from Haneda. Now the ANA group has direct and indirect influence over a dominant 60% of domestic slots at Haneda. With Air Do, Solaseed Air, and Star Flyer having adopted ANA's reservations system and effectively becoming de facto subsidiaries of ANA, a key to Skymark's independence in the long term is to continue using its own platform. (Photo: Ryosuke Yano)

In addition, Skymark reached an agreement with Mizuho Bank for the establishment of a commitment line on September 17th, allowing up to 10 billion JPY in financing. Payments to creditors will commence on November 30th, and those claiming 1 million JPY will receive the entire figure while those claiming more will initially be given 5% of the amount exceeding 1 million JPY. Biggest creditor Intrepid Aviation, which initially sought for 900 million USD (108 billion JPY) for scrapping Airbus 330 leases (Skymark terminates all Airbus A330 leases.) and fought against ANA to sponsor Skymark with Delta Air Lines [DL/DAL] (Intrepid picks Delta to sponsor Skymark.), has compromised at 57.3 billion JPY, while talks are still continuing with Airbus, Rolls-Royce, and CIT Aerospace, which are the second, third, and fourth largest creditors, respectively. A settlement with Airbus and Rolls-Royce is to be watched, as rumors point out to ANA making a backroom deal to purchase three of Skymark's canceled Rolls-Royce-powered A380s and taking options for two more, which prompted the two creditors to make a last-minute sway in favor of ANA's sponsorship over Delta's (Bye-bye Skymark, Hello ANA Airbus A380?).

Mr. Ichie said that no new routes nor route cuts are planned for the following year, after Sendai is axed. The new chief said Skymark will focus more on building loyalty in its communities where it has a relatively stronger brand recognition, such as in Kobe [UKB/RJBE] and Ibaraki [IBR/RJAH]. The fleet will be kept at at least 26 Boeing 737-800s, and whether to renew the lease of the 27th machine, which is expiring in January 2016, is currently being evaluated. Mr. Sayama confirmed that Skymark will retain its current identity even after it emerges from bankruptcy protection, instead of renaming it SKY bee (Skymark hints at new brand: SKY bee?). Both the new and old management agree that Skymark could become quickly profitable and be listed again in three years. Regulator Japan Civil Aviation Bureau (JCAB) has hinted limiting ANA's financial involvement in Skymark to five years to keep competition at Haneda, however, ANA's cozy relationship with the governing Liberal Democratic Party (LDP) could make the winds blow in their favor again.

Skymark's load factors are quickly recovering. Although August is normally a high month as it is the peak summer vacation travel season coupled with Obon homecoming, the bankrupt airline produced load factors exceeding 90% for most Haneda routes. It doesn't directly translate to yields, however, it is nevertheless a positive sign. With the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) currently planning to allocate most, if not all of, new future slots at Haneda to international flights in preparation for the 2020 Tokyo Olympics/Paralympics, its domestic market remains closed off to LCCs, making Skymark the only low-fare option at Japan's most important airport. But what market will Skymark pursue beyond that? It has lost against LCCs on almost every other directly-competing route, and though much lower cost and offering lower fares than ANA or JAL, it has failed to generate demand, which the LCCs have succeeded in doing. Regional international routes within reach of its 737s are also seeing growing competition from LCCs. And with the domestic market shrinking, Haneda is not a safe haven forever.

Finding itself being caught in between the majors and LCCs forced Skymark to boldly (and unsuccessfully) pursue the demand for affordable premium travel, initially in the domestic market with all-premium A330s (Skymark Airlines inaugurates Airbus A330 service.) and in the international long-haul arena with premium-only A380s (Skymark posts loss but optimistic with strategy tweaks.). The A330s were also equipped with full galleys so that it could fly regional international routes as well. However, it was too costly and Skymark failed there. So what future lies for Skymark in the long term?

Source: Aviation Wire, 2015 September 1st. (in Japanese)
Source: Aviation Wire, 2015 September 2nd. (in Japanese) 
Source: Aviation Wire, 2015 September 11th. (in Japanese)
Source: Hokkaido Shimbun, 2015 September 15th. (in Japanese)
Source: Toyo Keizai, 2015 September 17th. (in Japanese)
Source: Toyo Keizai, 2015 September 24th. (in Japanese)
Source: Aviation Wire, 2015 September 29th. (in Japanese)
Source: Skymark Airlines, 2015 September 29th. (in English)
Source: Nikkei Shimbun, 2015 September 29th. (in Japanese)
Source: Aviation Wire, 2015 September 29th. (in Japanese)

JAL shifts more Tokyo – China flights from Narita to Haneda.

On August 31st, Japan Airlines [JL/JAL] announced plans to expand their China network from Tokyo/Haneda [HND/RJTT] with new daily service to Guangzhou [CAN/ZGGG] and Shanghai/Pudong [PVG/ZSPD] along with a second daily round-trip to Beijing/Capital [PEK/ZBAA] effective October 25th, the beginning of the Winter 2015/2016 timetable. Meanwhile, Tokyo/Narita [NRT/RJAA] will see JAL axe Guangzhou and reduce Beijing from twice to once daily.

Nine 767s, including pictured Boeing 767-346/ER(WL) JA618J at Honolulu, are equipped with winglets and Sky Suite interior. JAL, which flies 32 -300ERs and 12 -300s, is celebrating their 30th year of 767 operations. 60 were ordered and the first, a -200, was delivered back on July 23rd, 1985. Although 787s are gradually taking over the 767s' roles, newer -300ERs are being converted to domestic, replacing older -300s and 777s. The versatile aircraft will surely soldier on for another decade or two. (Photo: Ryosuke Yano)

The new Haneda – Shanghai/Pudong link will be served by Boeing 767-300ERs configured with JAL's award-winning Sky Suite product (JAL adding more Sky Suite destinations.) and boasting a generous 199-seat layout (24 business and 175 economy class). The new Guangzhou and additional Beijing flights will see non-Sky Suite 227-seat (30 business and 197 economy class) 767-300ERs deployed.

Flight Schedule:
Haneda – Tokyo/Haneda – Beijing/Capital increase from 1 to 2 daily.
JL021 HND 0910 – 1220 PEK 788 Daily
JL025 HND 1720 – 2030 PEK 763 Daily *NEW from Oct/25.
JL020 PEK 0825 – 1245 HND 763 Daily *NEW from Oct/26.
JL022 PEK 1640 – 2100 HND 788 Daily

Tokyo/Haneda – Guangzhou NEW daily with 767-300ER.
JL087 HND 0850 – 1305 CAN 763 Daily *From Oct/25.
JL088 CAN 1450 – 1945 HND 763 Daily *From Oct/25.

Tokyo/Haneda – Shanghai/Hongqiao daily with 777-200ER. (existing service)
JL081 HND 0915 – 1145 SHA 772 Daily
JL082 SHA 1305 – 1645 HND 772 Daily

Tokyo/Haneda – Shanghai/Pudong NEW daily with 767-300ER.
JL085 HND 1440 – 1710 PVG 76W Daily *From Oct/25.
JL086 PVG 1835 – 2220 HND 76W Daily *From Oct/25.

In May, authorities of China and Japan agreed to allocate two round-trips to each side for Haneda – Guangzhou services. JAL's archrival All Nippon Airways [NH/ANA] was the first to take advantage, having already announced a similar expansion at Haneda and shift away from Narita (ANA strengthens Haneda – China with Guangzhou.). China Southern Airlines [CZ/CSN], based in China's third most populated city, is reportedly also preparing to launch the route though no official announcement has yet been made.

Source: Japan Airlines, 2015 August 31st. (in Japanese) 
Source: Aviation Wire, 2015 September 1st. (in Japanese)

ANA axes Oshima and transfers two routes to Air Do.

On August 19th, All Nippon Airways [NH/ANA] announced that they will cancel their daily Tokyo/Haneda [HND/RJTT] – Oshima [OIM/RJTO] service effective October 25th, the beginning of the Winter 2015/2016 schedule. It will also transfer Hakodate [HKD/RJCH] – Nagoya/Chubu Centrair [NGO/RJGG] and Sapporo/New Chitose [CTS/RJCC] – Hiroshima [HIJ/RJOA], both flown once daily, to AIRDO [HD/ADO] (d.b.a. Air Do).

Boeing 737-781(WL) JA18AN prepares for takeoff from New Chitose near Sapporo. Two more 737-700s will be transferred to Air Do, while the Hokkaido carrier's remaining two 737-500s will be returned to ANA. (Photo: Ryosuke Yano)

ANA has served Oshima, an island governed by Tokyo and located only 94 kilometers (58 miles) from Haneda, since 1955. After the 56-seat Bombardier DHC-8-300Q was retired on March 30th, 2014 (ANA quietly retires the Bombardier DHC-8-300Q), Japan's largest carrier had been deploying 120-seat (eight Premium Class and 112 economy) Boeing 737-700, since then the smallest aircraft in their fleet. However, the up-gauge resulted in an unsustainable load factor of just 14.1% for FY2014, and 10.4% for the recent six months. ANA's withdrawal will leave New Central Airservice [CUK] as the sole airline serving Oshima, from Tokyo/Chofu [RJTF] using 19-seat Dornier Do 228s (New Central Airservice receives 2nd Dornier 228NG.).

Meanwhile, the two Hokkaido routes had been announced earlier by Air Do as new routes, along with new three-times-daily New Chitose – Chubu Centrair (Air Do is coming to Hiroshima and Nagoya.). ANA is also cutting two of its six round-trips on the latter link. This announcement had been expected, as ANA Holdings, parent of ANA, holds 13.61% of Air Do, and implements code-sharing and joint ticket sales throughout its network, joint fuel purchases, joint crew training, and coordinates flights to complement that of ANA's. When Air Do cannot make a route work, it is transferred back to ANA (ANA takes over Air Do's unprofitable secondary routes.). 

Together with ANA partner Development Bank of Japan's (DBJ) 32.49% share, ANA virtually controls 46.1% of the Hokkaido-based start-up that originally challenged the legacy carriers. Air Do has adopted ANA's reservation system, giving its former rival access to all of their operational and financial data, and hence helping to relegate themselves to a feeder carrier for Japan's largest airline. ANA is trying to replicate this with Skymark Airlines [BC/SKY] (Bye-bye Skymark, Hello ANA Airbus A380?), as it did with Skynet Asia Airways [6J/SNJ] (d.b.a. Solaseed Air) and Star Flyer [7G/SFJ] as well.

Source: All Nippon Airways, 2015 August 19th. (in Japanese)
Source: All Nippon Airways, 2015 August 19th. (in Japanese)
Source: Aviation Wire, August 20th. (in Japanese)

Japan Airlines JL123 crash remembered 30 years on.

August 12th marked the 30th year since Japan Airlines [JL/JAL] flight JL123, an ordinary domestic flight from Tokyo/Haneda [HND/RJTT] bound for Osaka/Itami [ITM/RJOO], crashed into Mount Osutaka in Ueno Village, Gunma. It claimed the lives of all but four of 509 passengers and 15 crew members aboard, making it the deadliest aviation accident in Japan and the deadliest single-airliner accident in history. Boeing 747SR-46 JA8119 was the aircraft involved.

JAL President Yoshiharu Ueki paid tribute at the crash site memorial, swearing safety would never be compromised again. Mr. Ueki has participated in the ceremony every year since taking office in 2012. (Photo: Aviation Wire)

Last evening on August 11th, bereaved families and relatives floated lanterns on nearby Kanno River to honor those who perished and pray for aviation safety. On the following day today, hundreds of mourners hiked up the mountain to reach the crash site. Among them was Yoshiharu Ueki, JAL's current President. "I expressed my deepest condolence and apology to the 520 who died. I would like to apologize to the families and relatives for 30 years of suffering and sadness," said Mr. Ueki, adding "Lives come first. No compromise nor excuse is acceptable when it comes to safety. That is engrained in the hearts of the 32,000 employees at JAL."

A moment of silence was observed by participants at a ceremony that was held at the memorial facility near the foot of Mount Osutaka at 1856 JST, the exact time the ill-fated aircraft ended its short voyage. It was attended by 252 family members and relatives of the vitctims, as well as 104 officials from the local government, regulator Japan Civil Aviation Bureau (JCAB), and JAL, including Mr. Ueki, Chairman Masaru Onishi, and Vice President Nobuhiro Sato.

The doomed 747 that departed Haneda at 1812 on August 12th, 1985 quickly ran into trouble when a loud bang was heard followed by decompression. JA8119 had been involved in a tailstrike incident at Itami seven years earlier as flight JL115, and faulty repair of the damaged rear pressure bulkhead was determined as the cause of it not withstanding pressurization on the 12,319th flight after the fix. When the bulkhead gave way, the resulting explosive decompression ruptured the lines of all four hydraulic systems and ejected the vertical stabilizer. With the aircraft's flight controls disabled, the 747 became uncontrollable. Desperate efforts by the crew to tame the plane were in vain, and the aircraft crashed into Mount Osutaka approximately 30 minutes later.

Source: Aviation Wire, August 12th. (in Japanese)

Peach Aviation inaugurates Haneda – Taipei.

On August 8th, Peach Aviation [MM/APJ] commenced Tokyo/Haneda [HND/RJTT] – Taipei/Taoyuan [TPE/RCTP], becoming the first Japanese LCC to serve the capital's preferred but heavily-regulated downtown airport (Peach expands Taipei; Haneda and more Kansai.). The service will initially operate six days a week with 180-seat Airbus A320s, but will increase to daily from October 25th. The growing LCC has also added a third Osaka/Kansai [KIX/RJBB] – Taipei/Taoyuan round-trip.

Airbus A320-214 JA806P taxies at Haneda for departure on Peach's inaugural flight to Taoyuan Airport near Taipei. (Photo: Aviation Wire)

Affected by a typhoon that engulfed Taiwan, departure of inaugural flight MM1029 was delayed 10 hours and 45 minutes. Reservation was full, however, 30 passengers opted for a refund because of the flight disruption, and the load was 150. The flight, flown by A320-214 JA806P, departed Haneda at 1640 JST. "If you live near Haneda, you can park your bicycle here and go on a day trip to Taiwan. For those from Taiwan, you can spend more time at a bar in Tokyo," said Shinichi Inoue, CEO of Peach.

Flight Schedule:
Kansai – Taipei/Taoyuan increase from 14 to 20 weekly. (21 weekly from Oct/25)
MM023 KIX 0840 – 1030 TPE 320 Daily *Departs 10 min late on Mo.
MM027 KIX 1605 – 1755 TPE 320 Daily
MM029 KIX 2105 – 2255 TPE 320 Tu/We/Th/Fr/Sa/Su *No operation on Oct/16 & 23.
MM022 TPE 0915 – 1255 KIX 320 Mo/We/Th/Fr/Sa/Su *No operation on Oct/17 & 24.
MM024 TPE 1105 – 1445 KIX 320 Daily *Departs 10 min late on Mo.
MM028 TPE 1830 – 2210 KIX 320 Daily

Haneda – Taipei/Taoyuan NEW six weekly with A320-200. (Daily from Oct/25)
MM1029 HND 0555 – 0830 TPE 320 Mo/We/Th/Fr/Sa/Su *No operation on Oct/17 & 24.
MM1028 TPE 0030 – 0445 HND 320 Mo/We/Th/Fr/Sa/Su *No operation on Oct/17 & 24.

Peach's new link uses Haneda's under-utilized midnight slot-pairs allocated for international services. Under normal operations, the aircraft for the Haneda route arrives into Taipei as the third flight from Kansai late in the evening, and turns around for a red-eye flight to Haneda. After a brief 70-minute stay, it returns to Taipei as the outbound flight from Tokyo, in time for the first flight of the day from Taipei back to Kansai. Fares range from 7,680 JPY for a Happy Peach ticket, which only includes a 10-kilogram carry-on baggage allowance, to 53,580 JPY for last-minute, flexible and inclusive tickets.

The Kansai-based carrier became the first Japanese LCC to serve Haneda and the third overall after AirAsia X [D7/XAX], Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express), and Spring Airlines [9C/CQH]. Tigerair Taiwan [IT/TTW] and Zest Airways [Z2/EZD] (d.b.a AirAsia Zest) have plans as well.

Peach currently operates eight international and 12 domestic routes from its hubs at Kansai and Okinawa/Naha [OKA/ROAH] (Peach launches Naha hub; but Naha – Ishigaki axed.), and carried its 10 millionth passenger on August 6th. It will add Kansai – Miyazaki [KMI/RJFM] on August 28th (Peach loads Kansai – Miyazaki.) followed by Naha – Seoul/Incheon [ICN/RKSI] on September 4th (Peach announces Okinawa – Seoul.). Tokyo/Narita [NRT/RJAA] (Peach starts Narita to Fukuoka and Sapporo.) and Sendai [SDJ/RJSS] (Peach plans Sendai hub by Summer 2017.) have already been announced as their third and fourth future bases, and China and Thailand are on the horizon (Peach mulls Okinawa – Bangkok.).

Source: Aviation Wire, August 8th. (in Japanese)