United Airlines Holdings is seeking to raise more than US$1b by selling shares, stepping up efforts to increase capital to survive a collapse in travel demand. The offering consists of 39.25m shares and the underwriters have an option to buy an additional 3.93m shares, United said Tuesday. The deal is expected to price before the market opens Wednesday between $25.95 and $26.50 a share, said a person familiar with the matter, a discount of as much as 6.9% to the closing price. The stock offering is the first by a major US airline during the coronavirus pandemic. United’s shares tumbled 4% to $26.76 after the close of regular trading in New York, dropping its market value to $6.89b. The stock had plunged 68% this year through Tuesday’s close. <br/>
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The much-awaited report on the future of the South African Airways will not be known just yet as the Department of Public Enterprises still has to hold further engagement with organised labour. This comes after Public Enterprises minister Pravin Gordhan tabled an updated report on SAA at a virtual special Cabinet meeting Monday. Gordhan met with unions representing workers of SAA Tuesday to discuss their proposals to save the airline and minimise imminent job losses. Cabinet said further engagements with organised labour was planned this week before the inter-ministerial committee could process the SAA report. Unions said they were mindful that SAA would not survive in its current form and that it was time for extensive deliberation on options on how the airline could be rescued. <br/>
South Korea's 2 state-owned banks said Tuesday they will provide up to KRW1.7t (US$1.4b) in fresh liquidity to Asiana Airlines as the industry struggles with the coronavirus crisis. The loans are expected to keep the loss-making carrier going as Asiana awaits the completion of its acquisition by a consortium led by a South Korean builder, signed in December. Asiana can use the liquidity in the form of loans as needed, a spokesmen for Korea Development Bank and Export-Import Bank of Korea said. A consortium led by Hyundai Development in December had signed a deal to acquire a controlling stake in Asiana at KRW2.5t. However, the deal has not closed as regulatory approval from various countries for the acquisition is pending, while the impact from the coronavirus pandemic on the aviation industry has also raised questions about the deal's progress, local media said. <br/>
Air Canada will suspend all US-Canada flights April 27, slashing its 11 remaining US routes due to an extension of travel restrictions between the nations. The airline, which already significantly curtailed what it calls “transborder” flights, plans to resume US-Canada service May 22. However, the airline says that date could change due to “any further govt restrictions”. The US and Canada imposed a 30-day restriction March 21 on “non-essential travel” across their shared border. The countries extended the restrictions for another 30 days April 20. Air Canada had already reduced its US-Canada network to only 11 routes, which it continued serving “primarily to facilitate the repatriation of Canadians” stuck in the US. Air Canada says it has slashed its broader schedule more than 90% due to the coronavirus pandemic. <br/>