Japan Airlines is considering raising up to Y300b ($2.9b) in capital while expecting to post an operating loss of around Y85b for the three months through September, hit by a sharp fall in the number of international passengers due to the coronavirus pandemic, sources close to the matter said Monday. JAL could take out subordinated loans, which would allow the airline to count part of the debt as capital, as the impact of the novel coronavirus continues to gut demand for air travel, according to the sources. Seeing the need to strengthen its financial standing by next spring, JAL is hoping to begin full-blown negotiations on its capital-raising plan with a group of banks by the year-end, the sources said. JAL has already informally informed its lenders of such a view, the sources said, adding possible options to raise capital also include the issuance of subordinated corporate bonds and a public offering. JAL's estimated red ink for the July-September period would mark an improvement from its operating loss of Y131.01b in the previous quarter, as it has implemented cost-cutting measures and benefited from a government program launched in late July that subsidizes 35% of domestic travel expenses. JAL filed for bankruptcy in 2010, which exempted it from repaying remaining loans of over Y500b following restructuring efforts, eventually enabling the company to have a higher capital adequacy ratio than rival ANA.<br/>
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Japan Airlines is expected to report a consolidated net loss of Y230b ($2.2b) for the year ending March amid the coronavirus pandemic and a collapse in air travel, Nikkei learned Tuesday. This compares with a Y53.4b profit last year. The dismal prospect comes even as deficits have started narrowing in recent quarters, thanks to a gradual recovery in domestic flights. JAL is expected to publish its forecast when it releases half-year results on Friday. It is difficult to compare this year's results with those of the past, as the company switched to international accounting standards starting in fiscal 2020. A net loss would be the first since the company relisted on the stock exchange in 2012.<br/>
Cathay Pacific’s flight attendants union has threatened to mobilise its members for collective action if the airline refuses to postpone next week’s deadline for accepting a new contract that will slash wages by up to 40%. The threat came as the union representing the airline’s pilots, who are also facing a substantial pay cut, requested a Tuesday meeting with the labour commissioner to discuss the preservation of their “statutory rights”. Both groups have been told they face termination if they do not accept the new contracts. Representing most of the airline’s 8,000 flight attendants, the Cathay Pacific Flight Attendants Union held an emergency general meeting on Monday. Some 360 members took part, while another 140 were forced to wait outside due to the size of the venue at a Tung Chung hotel. After the four-hour meeting, the union said its members had pledged their full support for any potential collective action. “Our members have floated different suggestions for actions. There are still a lot of things we need to consider. At the moment, I cannot explain in detail,” said union vice chairwoman Amber Suen. “But as to when we will take the actions … the deadline is coming, so we will act fast.”<br/>
Finland's national carrier Finnair has started selling its business class meals in a supermarket to prevent job cuts at its catering unit due to COVID-19. The airplane meals have quickly turned into a hit with 1,600 meals sold within days at the supermarket located near Finnair’s main hub the Helsinki-Vantaa airport, Finnair said. It plans to sell in more outlets. “There are redundancies and layoffs going on already at Finnair and we are trying our best to find new innovative ways,” head of Finnair Kitchen Marika Nieminen said. Finnair said last Tuesday it would cut around 700 jobs by March 2021. Finnair Kitchen’s first main courses on the ground, for E12.9 apiece, comprise beef with teriyaki-radish sauce served with grilled spring onion and rice or smoked arctic char with chantarelle risotto. “In this desperate remote work environment this is a small, nice taste of normal life,” Mika, a customer from Vantaa said. In 2017, Finnair stopped outsourcing its catering services by buying LSG Sky Chefs, a company that operated at Finland's main airport, from a Lufthansa LHAG.DE subsidiary and renamed it Finnair Kitchen. A year later, Finnair Kitchen produced some 12,000 meals a day but the numbers collapsed when the COVID-19 pandemic hit air travel.<br/>
British Airways has confirmed that it is ending its contract with Marks & Spencer to provide inflight food on short-haul flights in economy class. A spokesperson for BA said: “We proudly launched our buy-on-board catering in 2017 with high street favourite, M&S. After a successful journey, we are headed off on a new flight path. We look forward to announcing our exciting new buy-on-board proposition with a great British brand that customers have told us they love.” An M&S spokesperson said,: “We are proud to have been a supplier to BA’s short-haul food service since 2017. Our partnership was always due to end this year and we have agreed not to renew. M&S Food continues to focus on developing its wider franchise partnerships.” The two main contenders for the new contract are reportedly Waitrose and Greggs. The Independent has asked both companies to comment.<br/>