Merger May Help Discount Carrier

Skymark Airlines Co., Japan’s first discount carrier, said it hopes Japan Airlines Co.’s takeover of Japan Air System Co. will give it more access to high-volume domestic routes.

Skymark hopes the merger will give fair opportunities for other airlines to add routes, said spokesman Soemu Kurashige. “We hope the merger won’t give consumers disadvantages, such as some routes being more expensive than others.”

Japan Airlines, Asia’s largest airline, said Sunday that it will acquire smaller rival Japan Air System by September, creating the world’s sixth-largest carrier to help cut costs as air travel slumps.

The two airlines may have to give up departure and landing slots within Japan, as the acquisition will give Japan Airlines 48% domestic market share, rivaling All Nippon Airways Co.’s 49% share, analysts said.

The merged company “may have to give up some flights, and if the small discount carriers want to add routes it will likely be easier for them to do so,” said Masanori Maruo, a transport analyst at Deutsche Securities Ltd. in Tokyo.

Skymark, one-third owned by a travel agent, H.I.S. Co., currently operates between Tokyo and Fukuoka on the southern island of Kyushu. It will open a second route between Tokyo and Kagoshima city in April.

Under the agreement between Japan Airlines and Japan Air System, the companies will create a holding company controlling both airlines and traded in Tokyo.

The new airline will have 52,000 employees and annual sales of about $19 billion. The government has yet to approve the takeover.