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Airbus cancels order for six A380s from Skymark

29 july 2014, 14:29
0
©Reuters/Kieran Doherty
©Reuters/Kieran Doherty

Airbus has cancelled an order for six A380 superjumbos from Skymark Airlines because the Japanese company is facing financial difficulties, AFP reports according to French daily Les Echos.

The European aircraft manufacturer reportedly terminated a $2.2 billion (1.6 billion euro) contract, signed in 2011, last week.

The cancellation was motivated by doubts over the strategy of the low-cost airline as well as "other financial considerations", the newspaper reported on its website.

Skymark posted its first net loss in five years of 13.5 million euros in the last financial year as stiff competition in the domestic market undermined its strategy to expand internationally.

The company, which "refused to go into debt, found it very difficult to meet payments for aircraft ordered from Airbus," the newspaper noted.

Airbus has already built two of the aircraft on order, which were set for delivery later this year.

Skymark will likely have to pay "heavy penalties", Les Echos said.


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