ANA seeks state guarantees as it borrows $12bn

Japan's ANA Holdings will request a government guarantee for part of the 1.3t yen ($12b) in credit lines the carrier is asking from public- and private-sector lenders as its revenue plunges amid the coronavirus pandemic. A guarantee would let the All Nippon Airways parent borrow without having to put up collateral, with potential to leave the government on the hook if the carrier defaults. Such arrangements are used more commonly for expensive projects such as plant construction than for corporate bailouts. Aid to the airline industry is among the issues being considered as the government hammers out an emergency coronavirus stimulus package due Tuesday. Providing guarantees to corporate loans could inform Japan's approach to support for other businesses as well. Though ANA holds Y300b in cash and equivalents, the carrier is losing Y100b monthly amid fixed costs and severely reduced revenue as demand for air travel evaporates. The company has canceled nearly 90% of its international service, and ridership on domestic flights is steadily dwindling as well. ANA is also requesting Y300b in loans from a lending program run by the government-backed Development Bank of Japan.<br/>