SKYMARK HIT BY COLLAPSED INVESTMENT DEAL REPORT

TOKYO:

Shares in Japanese  budget airline Skynark
plunged on Thursday after a report said talks
about a capital injection deal with bigger rival.
All Nippon Airways (ANA) had collapsed.

The company's Tokyo-listed shares dropped
as much as 15 per cent in early trading before
recovering some losses to close 6.92 per cent
lower at 363.0yen.

Skymark ,which flies domestic routes in
Japan,rejected the report."It is true that
we requested a capital injection (from ANA)
and we don't plan to do so" a company
spokes man said.

The top -selling Yomiuri newspaper said
ANA and JAL planned to start code- sharing
with Skymark in late March .Responding
 to that report ,the airline said a timeline
and other details had not yet been decided.

Later Thursday Skymark issued a statement
yhat denied the Nikkei story ,and said it was
 postponing a February 18 meeting where it
had beenexpected to seek sharesholder approval,
for any new investment.

The carrier has been  struggling owing to fierce
competition in the airline industry and its woes
deepened in July when Airbus  cancelled a deal
for the carrier to buy six A380 jets ,apparently
over payment concerns ,sending its shares
into freefall.
AFP