Cash-strapped Skymark Airlines files for court protection

Cash-strapped Skymark Airlines files for court protection

Skymark Airlines, the country's third-largest carrier, filed for court protection from creditors under the Civil Rehabilitation Law at the Tokyo District Court on Wednesday, giving up reconstructing its operations on its own, according to sources.

The decision to file for bankruptcy protection was finalized at an extraordinary meeting of its board of directors earlier on the day.

Skymark is expected to discuss a plan to seek assistance from ANA Holdings Inc., which has All Nippon Airways under its umbrella.

The carrier flagged after it faced demands from Airbus to pay as much as 70 billion yen (S$806 million) in penalties over the cancellation of a contract to purchase six A380s from the European aircraft manufacturer in July last year.

The carrier's total liabilities are 71.1 billion yen.

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