Japan Airlines Corp., Asia's most indebted carrier, said Thursday it may seek funds from state-run Development Bank of Japan to repay debt as widening losses make it harder for the carrier to borrow from bond markets.
The airline, which has to redeem ¥30 billion worth of bonds by August, may apply to its largest creditor for a loan, JAL spokeswoman Sze Hunn Yap said. JAL is studying options for repayment of debt, buying aircraft and other investments, said Yuichiro Kito, director of finance.
JAL's junk rating has prevented it from tapping renewed demand for corporate debt that helped drive Japan's bond sales to a record in March, led by Panasonic Corp. and Denso Corp. The airline's international passengers slumped in the fourth quarter as the country's economy shrank at its fastest pace in 34 years.