Japanese airline ANA Holdings said Friday it will issue new shares to raise 332 billion yen ($3.2 billion) to pay for the Boeing 787 planes it has ordered and help weather the drop in air travel caused by the coronavirus pandemic.
See also: US considers lifting European travel restrictions.
“The company intends to use the new stock offering for capital expenditures, including the acquisition of 787 aircraft,” ANA said in a press release.
The stock issuance comes after ANA guaranteed $3.8 billion in subordinated loans from the state-backed Japan Development Bank and private lenders such as Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group.
See also: Global air transport will lose $157.2 billion in 2020 and 2021.
Like other major Asian airlines, ANA is trying to cope with the fallout from the pandemic by cutting costs.
That includes asking staff to take leave or accept pay cuts. The Japanese government has also helped by cutting airport fees, including a waiver of the landing fee.
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