Japanese airline, ANA Holdings, has confirmed its intention to launch an offering of new shares in order to raise approximately ¥332.1bn ($3.2bn) to purchase 787 aircraft. The airline said that the new Boeing 787-9 and 787- 10 aircraft “are expected to improve capacity to optimize supply to demand and reduce negative environmental impacts”, while the funds would also be made available to repay long-term debt in order to strengthen the company’s “financial soundness for enhanced risk tolerance”.
ANA will issue 126,310,000 shares of common stock - 91,310,000 shares for the Japanese public offering and 35,000,000 shares for the international offering.
Nomura, Goldman Sachs, and SMBC Nikko are global co-ordinators for the equity issuance.
In October, ANA reported that its predicted operating revenues for the year ending March 31, 2021 will likely be down about 60% on the previous year, with profits also “significantly lower” despite efforts to cut variable costs by curtailing the scale of flights and personnel and aircraft expenses. ANA confirmed that it expects to record an operating loss, an ordinary loss and a net loss attributable to owners of the parent for the year ending March 31, 2021. The airline company also disclosed that it will record a ¥73.0 billion impairment losses incurred as a result of the large-scale retirement of aircraft.
Meanwhile, the Worldwide Airport Slot Board (WASB), comprising Airports Council International (ACI World), the International Air Transport Association (IATA), and the Worldwide Airport Coordinators Group (WWACG) have called on regulators worldwide to temporarily adopt more flexible slot rules in line with the recommendation “as quickly as possible in order to preserve essential air transport connectivity”.
IATA figures show that as a result of the collapse in demand from the COVID-19 crisis, some 65% of direct city pair connections vanished in the first quarter of 2020. Adding that recovery is “impossible while there is no certainty on the rules governing the use and retention of airport slots”.
The organisations stress that the existing slot rules were never designed to cope with a prolonged industry collapse. Regulators temporarily suspended the rules for Summer and Winter 2020 to give the industry vital breathing space. International air traffic, though, is only expected to return to about 25% of 2019 levels by summer 2021. In order to preserve connectivity while air traffic recovers, a more flexible system of slot regulation is essential, says the organisations.
The Worldwide Airport Slot Board (WASB) recommends that airlines that return a full series of slots by early February to be permitted to retain the right to operate them in summer 2022. It also calls for a lower operating threshold for retaining slots the following season. In normal industry conditions this is set at 80-20. The WASB recommends this be amended to 50-50 for Summer 2021. Furthermore, the WASB calls for a clear definition for acceptable non-use of a slot. For example, force majeure as a result of short-term border closures or quarantine measures imposed by governments.
“It is vital that regulators quickly adopt the WASB proposals on a globally harmonized basis. Airlines and airports need certainty as they are already planning the 2021 Summer season (which begins in April) and have to agree schedules. Delays in adopting new rules will further damage the industry at a time when industry finances, and 4.8 million jobs in air transport, hang by a thread,” said Alexandre de Juniac, IATA’s Director General and CEO.
“Creating a globally-compatible approach to the crucial issue of airport slots is an important part of underpinning a recovery of aviation. The united position of the air transport industry on what needs to be done to protect connectivity and choice in the best interests of passengers is a clear signal to regulators of the extreme urgency of the situation. Action is needed now as any delay makes recovery for air transport, and the global economy, more difficult. We need regulators to recognize the crisis we are in and act with speed and flexibility,” said Luis Felipe de Oliveira, Director General of ACI World.
“WWACG welcome the possibility to work out a common ground together with IATA and ACI World for the preparation of the 2021 Summer season. It is important that relevant authorities take appropriate action to secure the aviation industry the necessary predictability in the planning process in these extraordinary times for the entire industry,” said Fred Andreas Wister, Chairman, WWACG.