JAL seeking US$2 billion bank loan
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Japan Air Lines has applied for a JPY200 billion (US$2 billion) loan from the Development Bank of Japan after the global recession sapped demand for international travel.
According to a Bloomberg report, quoting airline spokesperson Taro Namba, the carrier hasn’t been told when it will receive an answer on its application.
JAL has JPY35 billion in bonds maturing over the next four months and has said it may post a loss of JPY34 billion for the last fiscal year amid a slump in business travel. The airline’s below-investment-grade credit rating has prevented it from tapping renewed demand for corporate debt, the report stated.
The state-run Development Bank of Japan is JAL’s largest creditor, with JPY284 billion in borrowings outstanding at the end of March 2008. The bank lent the carrier JPY90 billion during outbreaks of SARS in the fiscal year that ended in March 2004.
The airline flew 18.2% fewer passengers overseas in December, the biggest monthly decline since August 2003.
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