AirAsia CEO rubbishes Skymark bid report

[SINGAPORE] Malaysia's AirAsia Bhd has dismissed a media report that it is weighing a bid for Japan's embattled Skymark Airlines, saying it is focused on a budget airline it is setting up with Japanese partners.

The Nikkei business daily said that AirAsia, the region's most aggressive budget airline, is in talks with financial institutions on a possible tender offer for the low-cost carrier - sending shares in Skymark surging 28 per cent.

Skymark last month warned of uncertainty about its ability to stay in business if it had to pay penalties to Airbus for failing to follow-through on an order for six A380 superjumbos. The carrier, which had been unable to get financing for the deal, said Airbus was demanding "an extraordinary amount of compensation".