TOKYO: Japanese airline group ANA Holdings Inc. has asked the government-affiliated Development Bank of Japan and private financial institutions to set up credit lines totaling 1.3 trillion yen, it was learned Friday.
With its revenue from passenger flight services tumbling due to a plunge in demand blamed on the global coronavirus pandemic, the company aims to make sure that it can secure loans whenever a need arises through the credit lines as the fight against the new virus could take time, according to sources familiar with the matter.
ANA Holdings will seek a cash line of one trillion yen at the DBJ and 300 billion yen in total at major commercial banks, the sources said, adding that they will launch negotiations soon.
All Nippon Airways, the core operating unit of the holding firm, is set to cancel nearly 90 percent of its international flights this month, at a time when Japan and other countries are strengthening entry restrictions due to the pandemic.
In a separate move, ANA Holdings will work to obtain 300 billion yen of loans from the DBJ and a total of 100 billion yen from institutions including Sumitomo Mitsui Banking Corp., the sources said.
ANA has started a program to put 6,400 flight attendants, or 70 percent of its total, on temporary leave and decided to cut executive pay as measures to slash costs to deal with the current tough situation.