Japan's bankrupt Skymark Airlines submits turnaround plan

Bankrupt Japanese carrier Skymark Airlines on Friday submitted a restructuring plan to a Tokyo court that will see it owned by its banks, rival All Nippon Airways and an investment fund. Skymark, Japan's third-biggest airline which flies on domestic routes, filed for bankruptcy protection in late January in the face of potentially massive penalties linked to a cancelled $2.2 billion jet order with Airbus. Under the 18 billion yen ($145-million) turnaround scheme, investment fund Integral will take a 50.1 percent share of Skymark, while a fund set up jointly by the Development Bank of Japan and Sumitomo Mitsui Banking Corp. will take 33.4 percent. ANA Holdings, parent company of All Nippon Airways, will own 16.5 percent of Skymark, which has continued operating depsite its financial woes. "We will keep working on revitalising our business while receiving the support and cooperation from all of our business clients and customers," Skymark said in a statement. The company added that it was aiming its keep its workforce "basically" unchanged. Skymark's efforts to turn itself around failed as it struggled against tough competition in the sector, while its troubles deepened after the deal with Airbus collapsed last summer.