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Japan's ANA Holdings said Tuesday that it had secured 950b yen (US$8.8b) in loans to help it weather the coronavirus crisis rocking the global aviation industry. "There is absolutely no concern on cash flow for a while," ANA executive VP Ichiro Fukuzawa said. "We have been preparing for unexpected circumstances with conservative assumptions." ANA, which had nearly 240 billion yen in cash and securities at the end of March, reached an agreement Tuesday for an additional 350b yen credit line from private-sector banks, in addition to an existing 150b yen credit line. The airline had previously secured a 100b yen loan from banks, and is about to secure 350b yen worth of loans from a public sector lender to help it withstand the unprecedented crisis. Still, aviation analysts expect further financial countermeasures could be needed to help steady Japan's biggest carrier with the global pandemic likely to wipe out demand for the rest of the year. While ANA has suspended its guidance on earnings for this fiscal year due to uncertainty around when the coronavirus crisis might end, Fukuzawa said that the company assumed that a gradual recovery would start to take effect by August.<br/>

ANA Holdings said Tuesday it logged its biggest quarterly group net loss of Y58.7b (US$549m) in the January to March period as the coronavirus pandemic sharply reduced demand for air travel. The operator of ANA did not provide an earnings forecast for the current business year starting in April as the outlook remains unclear due to restrictions placed on the movement of people worldwide. The company said its group net profit in the business year ended March plunged 75.0% from a year earlier to Y27.66b. Its operating profit for the just-ended business year dived 63.2% to Y60.81b on sales of Y1.97t, down 4.1%. The aviation company said it has nearly secured a total of Y950b including loans and credit lines provided by commercial banks to underpin its financing while demand for flights has substantially declined. However, ANA plans to more than double the number of employees subject to taking three to five days a month of partially paid leave to about 43,000, or more than 90 percent of its group workforce, from the previously planned 20,000 as part of cost-cutting efforts while maintaining employment. The company said it has cut 90% of international flights and 70% of domestic ones in April compared with its initial plan.<br/>

Lufthansa , locked in tense negotiations over terms of a multi-billion euro state bailout, is considering court protection as a last resort should the sides fail to reach an agreement. The so-called “Schutzschirm” protection would shield Europe’s biggest airline from creditors for three months while it works out a management-led restructuring plan. The specter of a court-supervised proceeding comes as talks with Germany intensify over terms of a rescue that could exceed E8b. One option being discussed could include giving the government seats on the board and the power to block strategic decisions - terms Lufthansa is loath to accept because they may dent the firm’s competitiveness. While talks are continuing and German leaders have promised not to allow Lufthansa to fail, the possibility of creditor protection harkens back to the global financial crisis a decade ago. The airline’s management team fears that the terms on offer would limit Lufthansa’s ability to compete in Europe against low-cost carriers and internationally against US and Asian carriers that won’t be as indebted in the wake of the crisis.<br/>

SAS is eliminating as many as 5,000 jobs, marking the first permanent staff cuts by a major European carrier in the face of collapsing travel demand. The Stockholm-based company said Tuesday that the dismissals, amounting to 40% of the workforce, are necessary because employees have an average notice period of six months and it needs to prepare for what may be years of sluggish demand. The job cuts provide a taste of things to come at European airlines, which have suffered one of the biggest hits from the coronavirus pandemic, with 90% of capacity grounded. Government furlough programs have generally avoided firings in the short-term, with thousands of workers laid off temporarily. “It’s a painful message to give,” SAS CEO Rickard Gustafson said. “We are prepared to shift if demand returns more quickly and pull back some of the announced cuts.” SAS, which had already laid off 90% of employees, will split the permanent job cuts across its three home nations, with about 1,900 posts going in Sweden, 1,700 in Denmark and 1,300 in Norway. Labor law in Nordic countries means notice periods are often longer than elsewhere in Europe. British firms legally have to give no more than 12 weeks’ notice, around half the period SAS said applies to its employees on average. <br/>

Lufthansa’s Austrian unit AUA said Tuesday it has applied for state aid of E767m. “I can confirm that we have submitted an official application for state aid,” said a spokesman for Austrian Airlines. A large part should be repayable loans and the remainder grants which are still under negotiation, he said.<br/>

Pilots and flight attendants with Polish national airline PLL LOT have rejected a management proposal regarding idle time pay as the group struggles to cope with the impact of the coronavirus outbreak, the company said on Tuesday. "Unlike the competition, LOT aims to maintain jobs. For this plan to succeed, it must reduce fixed costs, including payroll costs for employees who currently do not perform any activities," LOT said. The company proposed to pay pilots and flight attendants 8,000-9,000 zlotys and 3,700 zlotys a month respectively as idle time pay. Aircrew representatives rejected the proposal and talks between management and trade unions have been suspended. "The company will work on other proposals," LOT said.<br/>