ANA Holdings Inc. President Shinya Katanozaka told The Yomiuri Shimbun the airline will maintain its independence even as an increasing number of foreign governments have provided support to their domestic airlines.
The Yomiuri Shimbun : As the demand for air travel has fallen due to the spread of the novel coronavirus, ANA Holdings' funds on hand have been decreasing. How will your company secure funds?
Shinya Katanozaka : We have been able to ascertain the prospect of securing funds for the coming year or so. We can get hold of 950 billion yen, including through credit lines.
Q : What about future fund procurement plans?
A : There are many options. One method is to raise funds by selling aircraft and switching to lease contracts. But if only the amount of borrowings increases, it will bring about an issue of the ratio of borrowings to capital. So, borrowing subordinated loans [which are regarded as capital instead of debt] can become an option.
Q : How about the outlook for recovery in air travel demand?
A : The impact of the coronavirus pandemic will be protracted. Even at the end of fiscal 2020 next March, the demand for air transportation will stand at 70% for domestic flights and 50% for international flights [compared with demand before the crisis].
Q : In foreign countries, there has been one move after another for governments to become actively involved in airlines' management by doing such things as acquiring their equity. What do you think of this?
A : [ANA] has sustained itself as a genuine private company since its foundation. I have no plans whatsoever to acquire government-related funds.
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