Japan Airlines taps lenders for $2.8b in financing: Report

Photo: Japan Airlines' Facebook page

Japan Airlines Co is discussing the possibility of securing financing totaling $2.8 billion from its lenders to cushion the financial blow of the coronavirus outbreak, public broadcaster NHK said on Saturday.

The airline, which has seen its passenger numbers tumble as it has slashed 90% of its international flights and 60% of domestic flights, has tapped its main lenders Mitsubishi UFJ Financial Group, Mizuho Financial Group and other banks for extra funding, NHK said, citing unnamed sources.

It was also considering securing special emergency funding from the Development Bank of Japan (DBJ), it added.

The airline was not immediately available for comment.

Global airlines are struggling to pay fixed costs as the majority of their planes have been grounded due to traveling restrictions put in place to control the spread of the coronavirus.

Japan’s government has promised financial support for the country’s airlines as part of a coronavirus stimulus package equivalent to a fifth of Japan’s annual GDP, although it has yet to say how much they will receive.

JAL and its rival ANA Holdings Inc are not government-owned, but ties with regulators are close, with officials and politicians willing to extend financial help in troubled times to support a domestic aviation network that connects an island archipelago stretching almost 3,000 kilometers (1,800 miles).

Earlier this month, Reuters reported that ANA is seeking a $2.8 billion credit line from the DBJ, and is working with private banks to bring forward $930 million in borrowing that had been scheduled for June.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.