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© Thomson Reuters 2020.Japan prefers piecemeal approach to big bailout for carrier ANA
By Takaya Yamaguchi and Leika Kihara TOKYO©2024 GPlusMedia Inc.
20 Comments
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Strangerland
Personally, it's my favorite airline.
TARA TAN KITAOKA
Ana is not what people think. I almost never fly Ana.
serendipitous1
ANA could offer discount priced flights that are paid for now but can be taken sometime within the next 2 or 3 years. That might get them some needed cash.
mmwkdw
Ultimately the Bank of Japan is responsible. So the chain of payment obligations could theoretically be frozen in time until such time the situation becomes normal again - of course that would mean no one gets paid in between now and then, and Companies go bust....
factchecker
Pukey2
Maybe JAL and ANA can merge to save money. They could call the company JANAL.
trevorpeace:
And how easy or cheap would it be to get tested within 72 hours of departure? Japan is making it very very difficult even for permanent residents. You have to go to the embassy to get their own forms too. Make no mistake, this is done on purpose. I hope no tourists come and the Olympics get cancelled. It'll serve them right.
kyronstavic
Did you miss the first part of the sentence? The reason why ANA and millions of businesses around the globe are in deep trouble? It's possible to do both without crippling economies around the world.
drlucifer
I will repeat again, I will sympathize with LCC and not companies like ANA
that over the years have made massive profits by over charging travellers, we often hear
of Apple having 194B USD cash at hand, where is ANA's cash at hand ?, I don't
believe all their profits was distributed to shareholders. Japan post is not accepting air packages
bound for more than a hundred countries and considering Japan is an export oriented economy
there is presently tremendous demand for air cargo, ANA can convert some of their planes to cargo
Korean Airlines made a 125M USD profit during this pandemic, ANA can also take advantage as well
instead of relying on bailouts.
kyronstavic
Given that governments are responsible for the economic mayhem that they have inflicted through lockdowns/excessive restrictions, they must be partly liable for bailing out companies like ANA. But of course doing so would just add to the infinite level of money printing that’s going on now to “create” the money to do so.
Now that it’s increasingly clear that this virus is nowhere near as lethal as we’ve been misled to believe, it’s time to open up the economies to trade and travel and let companies like ANA and hundreds of thousands of others get back on their feet while protecting the relative small number of people who might actually get sick for SARS-CoV-2.
Goodlucktoyou
Interesting. JAL has a nice friendly relationship with LDP. Bailout.
I’m biased because I have had better service from ANA.
dbsaiya
JAL received a lump sum bailout that saved them from 2.3 trillion yen debt almost 10 years ago. This debt was not based on something uncontrollable like the pandemic but basically poor management. JAL was the "national" airlines of Japan and received favoritism and basically placed ANA on an uneven playing field. And now ANA has to eat this? Why the double standards, someone big owns a lot of JAL stock?
n1k1
I would personally prefer a full blown huge bailout or nationalisation.
Cost cuts and the sort will almost certainly affect safety and I for one won't fly ANA anymore.
There is no point surviving the plague just to die in an aeroplane crash.
dagon
Airlines (along with banks) are one of those businesses that need massive infusions of corporate welfare in a seemingly cyclical basis. Oil shock, 911 and war in the Middle east, financial crisis and now COVID. When are they going to get to experience the glorious possibilities of the free market and the wonderful opportunities of late stage capitalism?
JeffLee
Gotta love how the Einsteins at the BOJ and economists scratch their heads over Japanese people's "deflationary mindset." Here it's source, folks -- Japanese companies that cut wages instead of furloughs and layoffs as part of restructuring.
If this continues, 100 yen stores will be 80 yen stores. Hello, deflation!
Cricky
It sinks, if a business goes bust so be it. Tax payers have more pressing problems than propping up a failed Buisness model.
TrevorPeace
Just open the country to foreign tourists, make sure they're tested and negative before leaving their native country, test them when they arrive in Japan and once again when they leave. Make masks mandatory. The entire world is falling apart because of a virus that kills a very, very small portion of any country's population, and almost every one of those people are very old, comparatively speaking, or have other serious health problems. The 'social woke' media are hyping this to the extreme, and it's getting tiring. Politicians are kowtowing to needless fear. We can't all live forever.