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ANA chief denies public stock offering to buy 70 new aircraft

June 22, 2014

ANA Holdings Inc. President Shinichiro Ito said Monday his company is not planning a public stock offering to fund 70 new Boeing and Airbus aircraft, whose list prices amount to more than 1.7 trillion yen.

"We are not short of funds," Ito said at a general shareholders' meeting in Tokyo, shrugging off concerns about dilution after a possible stock offering.

The company will secure funds by utilizing its internal reserves and financial loans, he added.

Ito said ANA is planning to invest about 150 billion yen annually for the 70 aircraft to be delivered by 2027, together with more than 60 other planes for which it has made orders.

In March, ANA Holdings said it would buy 20 Boeing 777-9Xs, large twin-aisle aircraft, as well as six Boeing 777-300 ERs and 14 Boeing 787-9s from Boeing Co. of the United States and smaller single-aisle jets from the A320 family -- seven A320neo and 23 A321neo from Europe's Airbus S.A.S., representing the biggest purchase by ANA both in terms of number of aircraft and cost.

The company said at the general shareholders' meeting it decided to buy the planes, many of which will go into service over coming years, to meet expected growing flight demand in line with the 2020 Tokyo Olympics.

Asked about pilot shortages at its wholly owned Vanilla Air Inc. and affiliate Peach Aviation Ltd. that led to flight cancelations, the holding company said it will consider assisting them by dispatching instructors and using its pilot training company.

Although there is a robust demand for pilots, especially in Asia, All Nippon Airways Co. has been able to hire enough pilots so far, an ANA Holdings official said.

In the business year ended in March, ANA Holdings' group net profit plunged 56.2 percent from the previous year to 18.89 billion yen, with operating profit declining 36.4 percent to 65.99 billion yen due to the yen's weakness, which boosted fuel costs as well as the negative impact of the worldwide grounding of Boeing 787 jets over a series of battery-related problems.

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Source: Japan Economic Newswire

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