The parent company of Japan's All Nippon Airways (ANA) said Wednesday it was throwing a lifeline to domestic rival Skymark Airlines by taking a nearly 20 percent stake in the bankrupt carrier.
ANA Holdings said it would invest in Skymark along with private equity fund Integral, which would take a 50.1 percent interest in the firm.
The struggling airline's creditors would scoop up the remaining stake, for a total of 18 billion yen ($150 million).
Skymark, Japan's third-biggest airline which flies on domestic routes, filed for bankruptcy protection in late January in the face of potentially massive penalties linked to a cancelled $2.2 billion jet order with Airbus.
"Integral and ANA have agreed to cooperate to enhance the value of Skymark and do our best to get its shares listed again within five years," ANA Holdings said in a press release.
The stock was delisted from the Tokyo exchange last month.
ANA will appoint a new president and Integral will pick a new chairman once Skymark's rehabilitation plan -- which it will present to Tokyo District Court by May 29 -- is approved.
Current chairman Takashi Ide and president Masakazu Arimori are expected to step down around June, local media said.
Skymark's efforts to turn itself around failed as it struggled against tough competition in the sector, while its woes deepened after the deal with Airbus collapsed in the summer.