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Japan's budget airline to merge with ANA

Tokyo - Struggling Japanese budget carrier Skymark Airlines says it is considering asking for help from domestic giant All Nippon Airways, even while eyeing a tie-up with ANA's rival Japan Airlines (JAL).

"We are considering asking for assistance" from ANA, Skymark spokesperson Hiroyuki Sakata said.

Skymark could ask for code-sharing as the main pillar of that assistance, as would be the case if a JAL tie-up is agreed. Selling flights under JAL or ANA's codes would help reduce vacant seats.

Shares skyrocket

The news on possible support from the nation's two biggest carriers sent Skymark shares soaring up 17.31% to ¥271.

The Nikkei economic daily had reported Skymark planned to get ANA on board because the transport ministry is reluctant to let JAL be the sole saviour.

But the Skymark spokesperson said it was the company's own decision to seek assistance from ANA.

"We need to rehabilitate our management urgently and are considering every possible measure," Sakata said.

ANA spokesperson Ryosei Nomura said the carrier "is ready to consider it seriously" if Skymark makes a formal request for assistance of some form.

Skymark has struggled to offer the kind of heavily discounted fares of overseas no-frills carriers due to high operating costs and has suffered from the plethora of new entrants into the sector.

Skymark was born out of deregulation measures in the 1990s that were aimed at challenging ANA and JAL's control of the market.

It operates lucrative flights in and out of Haneda Airport just a short train ride from downtown Tokyo.
 

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