Skymark Airlines (BC, Tokyo Haneda) is planning to terminate its Tokyo Narita operations as part of cost-cutting measures the Japan Times has reported. The newspaper quotes unnamed industry sources as saying the pullout could come as early as late October with all Tokyo-bound traffic to be routed via its primary Tokyo Haneda hub thereafter.

According to the ch-aviation route database, Skymark's current Narita operations consist of Okinawa Naha, Sapporo Chitose, and Yonago.

The LCC had also planned to launch its maiden international longhaul flights to New York JFK from Narita later this year using its first of six A380-800s on order from Airbus (AIB, Toulouse Blagnac). However, with the recent cancellation of the order, Skymark has now been slapped with JPY70billion (USD682million) in compensation claims by the Europeans compounding a first-quarter net loss of JPY5.8billion (USD56million).

As a result, management has warned that Skymark's going concern is now in danger given the added burden of rising fuel costs and intensifying competition.

It has now emerged that Japanese travel firm, H.I.S, last month reduced its stake in the airline from 7.68% to 6.49%.