Airbus has reportedly initiated legal proceedings against Skymark Airlines in the UK over the cancelled $2bn contract for six A380 superjumbo aircraft earlier this year.
Skymark signed the order for the aircraft in 2011, but due to poor finances the Japanese company asked to modifiy the contract and delay purchase, according to Japan News.
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Subsequently, Airbus notified Skymark its decision to terminate the contract in July.
Airbus spokeswoman Utako Fujiso was quoted by Reuters as saying that the company ‘has filed a claim in the English court’.
Skymark spokesman Hiroyuki Sakata said: "Airbus is beginning preparations for litigation regarding a penalty for breach of contract.
"Discussions with Airbus towards the resolution of this problem are proceeding and will continue to do so."
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By GlobalDataThe cancellation of the A380 contract is a major blow to Airbus at a time when the company is experiencing a low number of new orders for the aircraft.
Following the order cancellation, Airbus demanded a penalty of ¥70bn, which Skymark is seeking to reduce, the Japanese paper reported.
The aircraft maker recently said it estimates to generate flat profit for 2016, considering the slow sales of the A380 and struggling marketing efforts.
Skymark is reported to have approached four investment funds over a sale of 25% stake in early 2015.
The carrier is also planning to sign code-share deals with ANA Holdings Inc and Japan Airlines. It expects to record a loss of $114.6m for the year ending March.
Image: Airbus terminated Skymark’s A380 contract in July. Photo: courtesy of A Doumenjou / Airbus SAS.
