Star Flyer, an airline that continues to face difficult business conditions due to the effects of the new coronavirus, announced that it will receive a total of 11 billion yen from investment funds and multiple local companies in order to strengthen its financial base.
Star Flyer, which is headquartered in Kitakyushu City, continues to experience a difficult business situation, with the number of passengers continuing to decline due to the impact of the new coronavirus, and the final profit and loss in the interim settlement of accounts this year was the largest ever in the red.
According to the announcement, Star Flyer will recapitalize in March next year in the form of a third-party allotment of shares to issue new shares and accept investment.
▼ Investment fund "Advantage Advisors" will invest 8.5 billion yen in capital increase.
▼ Currently, ANA Holdings, the largest shareholder, will newly invest 1.5 billion yen.
▼ Furthermore, 12 companies participated in the investment, including the investment of 250 million yen each by "TOTO" and "Yaskawa Electric", which are headquartered in the local city of Kitakyushu and are also shareholders of Star Flyer.
The total amount of capital increase will be 11 billion yen.
How to use the raised funds ...
Star Flyer says that it will use the funds to be procured for structural reforms such as reviewing the aircraft it owns, and for investment for growth such as renewing its internal IT system.
Star Flyer has a policy of requesting support from Kitakyushu City, and Kitakyushu City is expected to start concrete consideration in the direction of providing support within this fiscal year in the form of support funds.
At a press conference, Star Flyer's political president, Shiramizu, said, "We have just taken the first step toward revitalization, recognizing that this capital increase was unavoidable amid the prolonged effects of the new coronavirus. From now on, it will be a crucial moment. I would like to thank everyone who cooperated and steer the management firmly. "
In the aviation industry, major ANA Holdings and Japan Airlines have also decided to recapitalize and strengthen their financial base one after another, while the prospect of convergence of the new coronavirus is uncertain.