Wednesday July 1, 12:56 PM
All Nippon Airways plans capital boost: reports
Japan's All Nippon Airways plans to raise about 1.6 billion dollars to help it weather an industry downturn caused by an economic slowdown and a flu pandemic, reports have said.
Japan's second-largest carrier aims to sell new shares worth about 150 billion yen (1.57 billion dollars), the Nikkei business daily and Jiji Press said.
The airline is expected to officially decide on the plan at a special board meeting Wednesday, Jiji said. There was no immediate confirmation from ANA.
ANA reportedly hopes to boost its capital before Tokyo's Narita and Haneda airports expand in 2010, creating more arrival and departure slots.
It has ordered 50 fuel-efficient 787 Dreamliners from Boeing Co., although the US aerospace giant has repeatedly postponed the launch.
In April, ANA announced a net loss of 4.26 billion yen for the financial year to March, its first annual loss in six years.
But it is in better shape than Japan Airlines, Asia's largest carrier. JAL has reportedly secured loans of 100 billion yen from a group of banks, including two state-backed lenders, to help it through the economic crisis.
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