TOKYO -- ANA Holdings seeks 300 billion yen ($2.79 billion) in financing from a program run by the government-backed Development Bank of Japan as the carrier braces for a prolonged drop in air travel.
The All Nippon Airways parent also plans to seek a total of 1.3 trillion yen in credit lines from the DBJ and private-sector financial institutions, Nikkei learned Friday, to ensure continued access to operating capital as the coronavirus pandemic sinks its revenue
All Nippon Airways has slashed international service by nearly 90% amid widespread travel restrictions to curb the spread of the virus, and domestic service has been cut by about 20%. The company expects demand to remain depressed for about a year.
ANA has roughly 300 billion yen in liquidity on hand, including cash and marketable securities, along with a 150 billion yen committed credit line. It is also negotiating a 100 billion yen syndicated loan from seven banks.
But with 100 billion yen in cash bleeding out each month because of the service cutbacks, ANA will seek additional support from the DBJ.