ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Transportation

ANA CEO tries to reassure shareholders over airline's financing

Katanozaka stresses $9.34 bn in support will ease cash flow at Japanese carrier

ANA has seen a significant drop in demand as the coronavirus pandemic closed international borders and essentially grounded the airline industry globally. (Photo by Akira Kodaka) 

TOKYO -- The president and CEO of ANA Holdings, Shinya Katanozaka, attempted to reassure shareholders during the company's annual shareholders' meeting on Monday, saying the Japanese carrier has "no problems with financing for the time being" as it has "prepared a total of one trillion yen ($9.34 billion) in borrowings and credit lines."

ANA, which is the parent company of All Nippon Airways -- Japan's largest airline -- has seen a significant drop in demand as the coronavirus pandemic closed international borders, effectively grounding the industry globally.

Katanozaka said that the company has raised 535 billion yen in funding in the three months to June and also stressed that it has secured 500 billion yen in committed lines of credit.

Despite the executive's bid to comfort shareholders, they had numerous questions about ANA's cash flow.

One shareholder asked what long-term financing plans were being considered. The company's chief financial officer, Ichiro Fukuzawa, responded, "First, we will do our best to control our cash outflow." He added, "Following our own efforts, we would like to consult with financial institutions on how to ensure smooth financing."

Investors in ANA had many questions about cash flow at its annual shareholders' meeting on June 29.   © Kyodo

One shareholder who attended the meeting, a 55-year-old man, told Nikkei, "I think management is trying their best, but I am worried about the company's financing because it is still unclear when the coronavirus will end."

The meeting lasted for about 90 minutes. A total of 585 shareholders attended, a huge drop from last year's 1,972, but ANA had encouraged low attendance due to the coronavirus. Shareholders who attended were asked to have their temperatures taken at the entrance.

Two proposals -- one for selecting the board of directors and the other on selection of corporate audit members -- were passed during the event.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more