Japan airline hit by Abenomics money printing

TOKYO, July 31, 2014 (AFP) – Airbus on Thursday said its decision to cancel a $2.2 billion jet order from Skymark Airlines was final, rejecting the Japanese carrier’s suggestion that talks were still ongoing. The European aircraft maker said this week it had informed Skymark that its purchase of six A380 superjumbos “has been terminated”, just hours after the airline said it was still locked in tough negotiations over the order.

Skymark’s Tokyo-listed shares plunged in the wake of Airbus announcement, wiping out a quarter of its market value in just two sessions.

“We are still in negotiations,” a Skymark spokeswoman said Thursday, but the claim was disputed by Airbus.

“We will not talk about the issue of the shipment anymore, as we have cancelled the order,” a spokesman for the European firm’s Tokyo unit told AFP Thursday.

He added that Airbus would now be working on a compensation deal over the failed deal, which was inked three years ago.

The carrier’s shares were down another 1.85 percent to 212 yen in Tokyo morning trade.

Skymark, which reports its latest financial results later on Thursday, had on Tuesday acknowledged that the deal was in trouble as a sharp decline in the y