Two of Japan's long-struggling second-tier airlines are starting to show signs of promise after securing restructuring assistance from major carrier All Nippon Airways (ANA).
Skynet Asia Airways (SNA) is the latest domestic carrier to secure assistance from ANA to help turn its operations around. ANA will take a minority stake as part of the aid deal.
After several years of work to establish itself, SNA launched no-frills domestic services in August 2002 only to fall quickly into financial difficulty. It has been restructuring since the middle of last year under the guidance of the state-backed Industrial Revitalization Corporation of Japan (IRCJ). As part of that process it looked for a major airline to help with its turnaround efforts.
ANA says it has agreed "to provide SNA with maintenance and operational support to assist its restructuring under the Industrial Revitalization Law". Full details have yet to be worked out, but "the assistance from ANA will take the form of further maintenance and operational related services, parts supply, airport handling and sales expertise, as well as training for crew". ANA already has a maintenance contract with Miyazaki-based SNA, which operates five Boeing 737-400s and which will soon be adding a sixth.
The IRCJ, which last year became the biggest shareholder in SNA, says ANA will acquire 14.99% of the carrier as part of the restructuring. The IRCJ, which was established in 2003 to help turn around troubled companies that are considered worthy, will retain 42%.
ANA's assistance deal with SNA will be its second with a struggling smaller carrier. It helped Boeing 767 operator Air Do, also known as Hokkaido International Airlines, with its successful restructuring and now owns nearly 14% of that airline. Air Do recently announced that it had repaid all its debts under a rehabilitation effort launched in 2002.
SNA currently operates its 737-400s between Tokyo's Haneda airport and the regional cities of Kumamoto and Miyazaki. In July it plans to add services between Tokyo and Nagasaki.
NICHOLAS IONIDES SINGAPORE
Source: Airline Business
