Delta Air Lines, Inc. (NYSE:DAL) might become a minority shareholder in Skymark Airlines Inc (OTCMKTS:SKALF) through a revival deal that the bankrupt Japanese carrier.
As a result of the deal, Delta has been forced to weigh the options between aiding the potential competitor and being engaged in its welfare. Under the new rehabilitation plan, Delta Airlines will decide whether to engage in a codeshare deal with Skymark Airlines. According to Masaru Morimoto, head of Skymark, if Delta signs the agreement, his firm’s management will remain independent.
An airplane leasing firm known as Intrepid claims that the Skymark has its debt of 104 billion yen ($841 million). It also claimed that it had been looking for an airline sponsor during the time Skymark proposed a rehabilitation plan that was passed over to a Japanese court on May 29. The two firms have been involved in some disputes since then. Integral Corp. and Skymark Airlines Inc (OTCMKTS:SKALF) had proposed a plan that relied on support from Japan’s largest airline, All Nippon Airways Co. but Intrepid was against it.
Intrepid CEO Franklin Pray said that his company is not comfortable with the ANA sponsor plan, mainly because it is not in line with the interests of all parties. The creditors are expected to vote on the competing plans during a meeting that will be held in Tokyo on August 5. Earlier this week, Intrepid revealed that Delta accepted a deal to provide technical support to Skymark during its reorganization. The Statement also quoted Delta’s 65-years involvement in the field and pointed out that it is the largest foreign airline in the lot.
ANA’s spokesman Ryosei Nomura claimed that they believe that a plan where their firm is involved is the best way to go. They will also continue to offer support to Skymark as it strives towards recovery. Skymark’s situation hit rock bottom, and the company had to file for bankruptcy protection in January. Its liabilities amount to roughly 300 billion Yen.
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