A380

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.

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.

"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."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The 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.