News

Aid proposed for Japanese airlines

30 Nov 2020 by Samuel Chan
All Nippon Airways Boeing 737-800

Japan’s ruling Liberal Democratic Party is calling on the Japanese government to provide “strong support” to the local airline industry due to the continued impact of Covid-19. 

Prime Minister Yoshihide Suga’s cabinet will be presented with a proposal next week, which has been endorsed by the party, and includes airport fee and fuel tax reductions, according to Reuters.

The ruling party is also requesting an extension of the country’s ‘Go To Travel’ campaign, offering subsidies for travel to hard-hit regions.

Japan Airlines Boeing 787-8 Hong Kong to Tokyo Narita business class / photo by Michael Allen

This month, the campaign has once again found itself in the spotlight as the world’s third-largest economy sees a resurgence in Covid-19 cases, according to The Japan Times.

The aid proposal comes amid an announcement that All Nippon Airways plans to raise 332 billion yen ($3.2 billion) in a bid to strengthen its balance sheet.

Proceeds from issuing new shares will help repay long-term debt and acquire Boeing 787s to optimise its fleet, according to ANA’s filing.

There have also been calls to merge ANA and flag carrier Japan Airlines, according to Bloomberg. This follows an earlier report that Korean Air will acquire rival Asiana Airlines in the neighbouring East Asian country.

ana.co.jp, jal.co.jp

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