Skymark Airlines (BC, Tokyo Haneda) has delayed finalizing its selection of participants for its restructuring drive until the end of the month with negotiations with each prospoective party having now begun.

According to Japanese media outlets, Skymark has enlisted financial advisory firm GCA Savvian to help find willing partners with the following parties having so far expressed an interest: financial services provider Orix; travel agency HIS Co.; brokerage firm Daiwa Securities Group Inc.; Shinsei Bank; trading and investment firm, Sojitz Corp.; and taxi company Nihon Kotsu.

The Nikkei Asian Review says Skymark management held talks with creditors Airbus (AIB, Toulouse Blagnac) and lessor, Intrepid Aviation, as well as ANA - All Nippon Airways (NH, Tokyo Haneda) executives behind closed doors last week to determine a way forward for the struggling carrier, which filed for bankruptcy protection in January citing total liabilities of JPY71.09 billion (USD597 million).

According to the paper, Skymark discussed ANA All Nippon's proposal for the carrier which management has labelled "shocking" as it would "blunt" their management resources. Under ANA's plan, Skymark's five A330s, currently parked at Tokyo Haneda, would be withdrawn in favour of an leaned down, all-Boeing (BOE, Washington National) fleet of approximately twenty B737-800s. In line with the capacity reduction, so a corresponding reduction in Skymark's route network would be undertaken resulting in all unused Tokyo Haneda slots being returned to the government.

It is currently uncertain how Airbus reacted to the proposal given that it has reportedly demanded the A330-300 remain a key component in any restructuring plan. Skymark could, however, consider transferring the ten A330 leases it holds to other airlines, one of which is AirAsia X (D7, Kuala Lumpur International). The Malaysian budget carrier has expressed an interest in taking over the A330's leases and is reportedly eager to participate in the LCC's turnaround through a possible merger with its nascent AirAsia Japan (Nagoya Chubu) subsidiary. AirAsia has itself encountered difficulties in launching its Japanese operations and would use Skymark as a catalyst in moving its Japanese unit forward.

Other contenders include American Airlines (AA, Dallas/Fort Worth) which, despite earlier reports that the airline had no interest in Skymark, has continued to maintain comms with the Japanese and has reportedly teamed up with JAL - Japan Airlines (JL, Tokyo Haneda). American, however, would only consider offering support once Skymark has adopted a viable rehabilitation plan.

Alongside Chinese operator, Hainan Airlines (HU, Haikou), Delta Air Lines (DL, Atlanta Hartsfield Jackson) has also kept its door open to Skymark with reports it would partner the carrier on flights throughout Japan.

Once Skymark has selected suitable firms to partner sponsor, Tokyo-based investment fund Integral, a restructuring plan is to be drafted by May 29 following which it will be submitted to the Tokyo District Court and Skymark's creditors for approval.