MIRA INFORM REPORT

 

 

Report Date :           

03.02.2012

 

IDENTIFICATION DETAILS

 

Name :

SKYMARK AIRLINES INC

 

 

Registered Office :

1-5-5 Haneda-Kuko Ohtaku Tokyo 144-0041JAPAN (Kuko means Airport)

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

November 1996

 

 

Com. Reg. No.:

(Tokyo-Ohtaku) 019529

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Airline Company

 

 

No. of Employees :

1815

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

Yen 1,705.8 Million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

---

 

 

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

SKYMARK AIRLINES INC

 

 

REGD NAME

 

Skymark KK

 

 

MAIN OFFICE

 

1-5-5 Haneda-Kuko Ohtaku Tokyo 144-0041JAPAN (Kuko means Airport)

Tel: 03-5708-8280

 

URL:                             http://www.skymark.co.jp/

E-Mail address:                        info@skymark.co.jp

 

 

ACTIVITIES

 

Airline company

 

 

BRANCHES

 

Tokyo, Fukuoka, Kobe, Chitose, Okinawa, Asahikawa, other (--airport offices)

 

 

CHIEF EXEC

 

SHIN’ICHI NISHIKUBO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 58,023 M

PAYMENTS                  REGULAR         CAPITAL           Yen 14,155 M

TREND             STEADY           WORTH            Yen 17,359 M

STARTED                     1996                 EMPLOYES      1,815

 

COMMENT    

 

AIRLINE COMPANY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,705.8 MILLION, 30 DAYS NORMAL TERMS.

                       

Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 

HIGHLIGHTS

           

This is the Japan’s fourth airline company operating regular domestic flights to/from Haneda Airport.  Attracting passengers with discount tickets, 50% lower than other leading airline operators.  Noted for low-cost management.  Operations are being restructured.  In Jul 2005, withdrew from Tokyo/Seoul (Inchon) charter flight services due to unprofitability.  Expanding local flights.  Noted for low-cost management. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 58,023 million, a 40% up from Yen 41,458 million in the previous term.  Added 6 new Boeing 737-800 type planes during the term with operating fleet now totals 18 planes.  Opened 12 new domestic routes plus chartered route of Haneda/Guam.  The volume of passengers increased 36.3%.  The recurring profit was posted at Yen 10,968 million and the net profit at Yen 6,325 million, respectively, compared with Yen 2,956 million recurring profit and Yen 2,627 million net profit, respectively, a year ago.

 

(Apr/Dec/2011 results): Sales Yen 58,656 million (up 42.4%), operating profit Yen 12,058 million (up 38.9%), recurring profit Yen 11,154 million (up 36.9%), net profit Yen 5,533 million (up 40.2%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2012 the recurring profit is projected at Yen 16,000 million and the net profit at Yen 8,800 million, on a 41% rise in turnover, to Yen 81,800 million.  7 new planes will be added, totaling 25 operating planes.  Price war is intensifying in Japan budget carrier market and competition is heating up.  Major domestic carriers are moving into the market by investing in new discount airlines, some with JV with foreign airlines.

           

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements.

 

Max credit limit is estimated at Yen 1,705.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Nov 1996

Regd No.:         (Tokyo-Ohtaku) 019529

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         187,720,000 shares

Issued:             70,813,400 shares

Sum:                   Yen 14,155 million

 

Major shareholders (%): Shin’Ichi Nishikubo (36.6), HIS Co Ltd (7.7), Master Trust Japan T (5.1), Japan Trustee Services T (5.0), Goldman Sachs (Regular) Acct (4.5), BONY GCM Client (2.6), SSBT OD05 Omnibus Acct Treaty CI (2.5), Chase London SL Omnibus Acct (1.6), ORIX Corp (1.3), Trust & Custody Services Inv T (1.1); foreign owners (24.5)

 

No. of shareholders: 12,252

 

Listed on the S/Exchange (s) of: Tokyo (Mothers)

 

Managements: Takashi Ide, ch; Shin’ichi Nishikubo, pres; Masakazu Arimori, mgn dir; Kimisada Sakagi, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

           

OPERATION

 

Activities: Airline company servicing to/from Haneda Airport on 5 routes; passengers (99%), cargo (0%), others (1%).

 

Clients: [Travel agents, business firms, passengers] JTB, Kinki Nippon Tourist, HIS Co, Nippon Travel Agency, Japan Airways Co, other.

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Oil refineries, wholesalers, travel agents] Idemitsu Kosan Co, Showa Shell Sekiyu, Jalux, Evergreen Aviation Technologies, Lufthansa Technik AG, GE CAS Leasing Norway AS, other.

 

Payment record: Regular

 

Location: Haneda Airport in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

·         MUFG (Nihombashi-Chuo)

·         Mizuho Bank (Kamata)

Relations: Satisfactory

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

 

  Annual Sales

　

58,023

41,458

 

  Cost of Sales

44,051

35,918

 

      GROSS PROFIT

13,972

5,539

 

  Selling & Adm Costs

2,776

2,396

 

      OPERATING PROFIT

11,195

3,143

 

  Non-Operating P/L

-227

-187

 

      RECURRING PROFIT

10,968

2,956

　

      NET PROFIT

6,325

2,677

BALANCE SHEET

 

 

 

 

 

  Cash

　

16,412

7,503

 

  Receivables

 

2,831

2,364

 

  Inventory

 

77

83

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,035

1,384

 

      TOTAL CURRENT ASSETS

22,355

11,334

 

  Property & Equipment

7,367

3,419

 

  Intangibles

 

49

20

 

  Investments, Other Fixed Assets

7,586

5,709

 

      TOTAL ASSETS

37,357

20,482

 

  Payables

 

2,162

1,408

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

11,537

3,389

 

      TOTAL CURRENT LIABS

13,699

4,797

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

6,298

4,294

 

      TOTAL LIABILITIES

19,997

9,091

 

      MINORITY INTERESTS

 

 

 

Common stock

4,952

4,780

 

Additional paid-in capital

4,085

3,913

 

Retained earnings

8,257

2,627

 

Evaluation p/l on investments/securities

　

　

 

Others

 

156

161

 

Treasury stock, at cost

(91)

(90)

 

      TOTAL S/HOLDERS` EQUITY

17,359

11,391

　

      TOTAL EQUITIES

37,357

20,482

CONSOLIDATED CASH FLOWS

 

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

14,825

5,348

 

Cash Flows from Investment Activities

-5,302

-903

 

Cash Flows from Financing Activities

-435

-16

　

Cash, Bank Deposits at the Term End

　

16,412

7,503

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

 

Net Worth (S/Holders' Equity)

17,359

11,391

 

 

Current Ratio (%)

163.19

236.27

 

 

Net Worth Ratio (%)

46.47

55.61

 

 

Recurring Profit Ratio (%)

18.90

7.13

 

 

Net Profit Ratio (%)

10.90

6.46

 

 

Return On Equity (%)

36.44

23.50

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.13

UK Pound

1

Rs.77.85

Euro

1

Rs.64.78

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.