Financing Risk Relating to Aircraft Introduction and Business Expansion
First written in FY2016. 9 of 26 entries say "Mitigated", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2025: 16 of 29 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「During the fiscal year, the company acquired aircraft through a finance lease in July. As a result of this transaction, prepaid consumption taxes and other taxes increased by ¥955 million, lease assets increased by ¥8,160 million, and lease liabilities, comprising current and non-current liabilities, increased by ¥8,160 million.」
The acquisition of aircraft through a finance lease was completed during the fiscal year, with lease assets and lease liabilities each increasing by ¥8,160 million. - FY2026-H1Acquisition of aircraft through finance leasesAnnual report
「During the six-month period, the company acquired aircraft through finance leases.」
The company carried out specific financing using a finance lease to fund the acquisition of aircraft. - FY2025MitigatedAnnual report
「Net cash used in financing activities was ¥2,648 million, compared with net cash provided by financing activities of ¥2,168 million in the previous fiscal year. This was mainly due to ¥1,802 million in repayments of long-term borrowings…」
Rather than receiving cash inflows from new borrowings, the company proceeded with repayments, including ¥1,802 million in long-term borrowings. The available balance under the undrawn overdraft facility and commitment line was ¥3.0 billion. - FY2025-H1MitigatedAnnual report
「Net cash used in financing activities was ¥1,753 million, compared with net cash provided by financing activities of ¥2,208 million in the same period of the previous year. This was mainly due to ¥800 million in repayments of short-term borrowings, ¥930 million in repayments of long-term borrowings, up 48.1% year on year, and ¥23 million in repayments of lease liabilities, down 63.8%.」
During the six-month period, the company recorded no proceeds from new borrowings and proceeded with repayments of short-term borrowings, long-term borrowings and lease liabilities. The company has shifted from the previous period, when additional borrowings for business expansion continued, to a repayment phase. - FY2024-Q3Continued additional borrowingAnnual report
「This was mainly due to an ¥800 million increase in short-term borrowings and a ¥2,400 million increase in long-term borrowings through additional borrowing, while total borrowings, comprising current and non-current liabilities, and total lease liabilities, also comprising current and non-current liabilities, decreased by ¥1,107 million through scheduled repayments. Provisions for periodic maintenance decreased by ¥2,272 million, and income taxes payable and other accrued taxes decreased by ¥176 million.」
To secure working capital and other funds, the company executed additional borrowings of ¥800 million in short-term borrowings and ¥2,400 million in long-term borrowings. - FY2024-Q2Execution of additional borrowingAnnual report
「Net cash provided by financing activities was ¥2,208 million, compared with ¥166 million in the same period of the previous year. This was mainly due to ¥628 million in repayments of long-term borrowings, down 16.9% year on year, and ¥63 million in repayments of lease liabilities, down 6.5%, while the net change in short-term borrowings was ¥800 million and proceeds from long-term borrowings were ¥2,100 million.」
The company raised ¥800 million through short-term borrowings and ¥2.1 billion through long-term borrowings, resulting in net cash provided by financing activities of ¥2.208 billion. - FY2024-Q1Execution and additional resolution for working capital borrowingAnnual report
「At a meeting held on 31 July 2023, the Board of Directors resolved to borrow funds. …Use of funds: working capital…Borrowing amount: ¥2,400 million…Repayment period: within 7 years」
In addition to ¥1,000 million in short-term borrowings and other balances at the end of the quarter, the company resolved after the filing date to borrow ¥2.4 billion for working capital. - FY2023MitigatedAnnual report
「The company received ¥300 million from long-term borrowings and ¥991 million from the issuance of shares upon the exercise of share acquisition rights, while making repayments of ¥1,512 million on long-term borrowings and ¥134 million on lease liabilities.」
The company raised ¥991 million through the exercise of share acquisition rights and proceeded with repayments of borrowings and lease liabilities. It also maintained the undrawn combined ¥3.0 billion overdraft facility and commitment line. - FY2023-Q2MitigatedAnnual report
「Net cash provided by financing activities was ¥166 million, compared with net cash used in financing activities of ¥3,722 million in the same period of the previous year. This was mainly due to ¥756 million in repayments of long-term borrowings, unchanged from the same period of the previous year, and ¥68 million in repayments of lease liabilities, down 92.8% year on year, while the company received ¥991 million from the issuance of shares upon the exercise of share acquisition rights.」
The company raised ¥991 million through the exercise of share acquisition rights while proceeding with repayments of long-term borrowings and lease liabilities, resulting in net cash from financing activities turning positive. - FY2023-Q1MitigatedAnnual report
「Total current assets increased by ¥1,104 million, mainly because cash and deposits increased by ¥354 million and derivative receivables increased by ¥982 million, due to the issuance of shares following the exercise of share acquisition rights and other factors. …Borrowings and lease liabilities decreased by ¥412 million through scheduled repayments, while…」
Cash increased through the exercise of share acquisition rights, while scheduled repayments of borrowings and lease liabilities progressed, resulting in some improvement in the company's funding and repayment position necessary for business continuity. - FY2022MitigatedAnnual report
「The undrawn borrowing facilities and other balances at the end of the fiscal year were as follows: Overdraft facility limit 1,000 Total lending commitments 2,000 Amount drawn － Available balance 3,000」
There was no amount drawn under the combined ¥3.0 billion overdraft facility and commitment line, leaving an available balance of ¥3.0 billion. The company also proceeded with repayments of long-term borrowings and lease liabilities, and disclosed its remaining financing capacity. - FY2022-Q3MitigatedAnnual report
「This was mainly because cash and deposits decreased by ¥8,090 million, including ¥5,492 million in payments of short-term and long-term borrowings and lease liabilities and ¥2,435 million in payments of trade and other payables.」
Rather than receiving cash inflows from new borrowings, the company proceeded with payments of borrowings and lease liabilities. The undrawn balance under the commitment line and other facilities was ¥3.0 billion. - FY2022-Q2MitigatedAnnual report
「Net cash used in financing activities was ¥3,722 million, compared with net cash provided by financing activities of ¥3,141 million in the same period of the previous year. This was mainly due to a ¥2,000 million decrease in the net change in short-term borrowings, ¥756 million in repayments of long-term borrowings, ¥947 million in repayments of lease liabilities and ¥18 million in dividend payments.」
Rather than receiving cash inflows from new borrowings, the company proceeded with repayments of short-term borrowings, long-term borrowings and lease liabilities. The undrawn balance under the commitment line and other facilities was ¥3.0 billion. - FY2021MitigatedAnnual report
「In March 2021, the company amended its commitment line agreement and syndicated loan agreement to relax the financial covenants. In addition, the Board of Directors resolved at its meeting held on 25 December 2020 to issue class shares and share acquisition rights by way of a private placement, among other matters, and payment for the issuance of the class shares and share acquisition rights was completed on 9 March 2021. As a result, the company determined that there would be no problem with cash management for the foreseeable future (the next 1 year) and that no material uncertainty existed regarding the going concern assumption.」
The company stated that, following the amendment of its agreements with financial institutions and completion of payment for the class shares and share acquisition rights, there would be no problem with cash management for the foreseeable future, or the next 1 year. - FY2021-Q3Finalization of financing measures, including a private placementAnnual report
「In addition to implementing these measures independently, we have requested that the arrangers and lenders provide support by not immediately making a claim for the loss of the benefit of time based on a breach of obligations arising from the violation of the financial covenants. Furthermore, while strengthening our close relationships with financial institutions, the Board of Directors resolved at its meeting held on 25 December 2020 to issue class shares and share acquisition rights by way of a private placement, among other matters, and determined that there would be no problem with cash management for the foreseeable future (the next 1 year).」
Borrowings increased by ¥3,194 million on a net basis through new borrowings and other transactions, bringing interest-bearing debt to ¥12,537 million. In addition, the company disclosed its request for support from financial institutions and the resolution to raise funds through class shares and share acquisition rights. - FY2021-Q2Continued borrowings and requests for support from financial institutionsAnnual report
「Net cash provided by financing activities was ¥3,141 million, compared with net cash used in financing activities of ¥1,161 million in the same period of the previous year. In addition to implementing these measures independently, we have requested that the arrangers and lenders provide support by not immediately making a claim for the loss of the benefit of time based on a breach of obligations arising from the violation of the financial covenants.」
The company recorded ¥4,000 million in proceeds from short-term and long-term borrowings and carried out the financing. At the same time, it continues to request support from financial institutions so that they do not immediately make a claim for the loss of the benefit of time relating to the financial covenants. - FY2021-Q1New borrowings and requests for support from financial institutionsAnnual report
「This was mainly due to accounts payable and other current liabilities decreasing by ¥845 million due to a decrease in sales commissions and other factors, and lease liabilities, comprising current and non-current liabilities, decreasing by ¥170 million through scheduled repayments, while borrowings, comprising current and non-current liabilities, increased by ¥781 million on a net basis after new borrowings and scheduled repayments, and the provision for periodic maintenance increased by ¥382 million, net of additions and utilization. The balance of interest-bearing debt at the end of the first quarter accounting period was ¥10,466 million.」
New borrowings increased borrowings by ¥781 million on a net basis. In addition, regarding the breach of financial covenants, the Company has requested support from financial institutions so that they do not immediately demand the loss of the benefit of time. - FY2020Execution of long-term borrowingAnnual report
「This was mainly due to payments of ¥1,120 million for repayments of short-term and long-term borrowings, up 83.9% year on year, and ¥719 million for repayments of lease liabilities, down 5.0% year on year, while proceeds from long-term borrowings were ¥3,100 million, down 18.4% year on year.」
While repayments continued, the Company raised ¥3.1 billion through long-term borrowings, and cash and cash equivalents at the end of the fiscal year were ¥9,716 million. - FY2020-Q3Continued repayment of borrowings and lease liabilitiesAnnual report
「Cash flows from financing activities were an outflow of ¥1,161 million, compared with an inflow of ¥3,450 million in the same period of the previous year. This was mainly due to payments of ¥751 million for repayments of short-term and long-term borrowings and ¥381 million for repayments of lease liabilities, up 1.3% year on year.」
During the cumulative third quarter period, no proceeds from new long-term borrowings were recorded, while repayments of borrowings and lease liabilities continued. - FY2020-Q2Repayment of borrowings and lease liabilitiesAnnual report
「Cash flows from financing activities were an outflow of ¥1,161 million, compared with an inflow of ¥3,450 million in the same period of the previous year. This was mainly due to payments of ¥751 million for repayments of short-term and long-term borrowings and ¥381 million for repayments of lease liabilities, up 1.3% year on year.」
During the cumulative second quarter period, no proceeds from new long-term borrowings were recorded, and cash flows from financing activities were an outflow of ¥1,161 million due to repayments of borrowings and lease liabilities. - FY2019-Q3Continued borrowings to fund aircraft introductionsAnnual report
「This was mainly due to total current liabilities, excluding borrowings and lease liabilities, decreasing by ¥1,399 million through payments of liabilities and taxes recorded at the end of the previous fiscal year, while borrowings, comprising current and non-current liabilities, increased by ¥3,712 million on a net basis after new borrowings and scheduled repayments, and the provision for periodic maintenance increased by ¥870 million, net of additions and utilization.」
New borrowings continued in connection with aircraft introductions and other activities, resulting in a net increase of ¥3,712 million in borrowings after scheduled repayments. - FY2019-Q2Increase in borrowings to fund aircraft introductionsAnnual report
「This was mainly due to total current liabilities, excluding borrowings and lease liabilities, decreasing by ¥1,212 million through payments of liabilities and taxes recorded at the end of the previous fiscal year, while borrowings, comprising current and non-current liabilities, increased by ¥3,884 million on a net basis after new borrowings and scheduled repayments, and the provision for periodic maintenance increased by ¥592 million, net of additions and utilization.」
New borrowings increased in connection with capital expenditures, including aircraft introductions, resulting in a net increase of ¥3,884 million in borrowings after scheduled repayments. - FY2019-Q1Borrowings drawn to fund aircraft introductionsAnnual report
「This was mainly due to total current liabilities, excluding borrowings and lease liabilities, decreasing by ¥1,747 million through payments of liabilities and taxes recorded at the end of the previous fiscal year, while borrowings, comprising current and non-current liabilities, increased by ¥3,072 million on a net basis after new borrowings and scheduled repayments, and the provision for periodic maintenance increased by ¥323 million through additions and other factors.」
New borrowings were drawn in connection with business expansion, including aircraft introductions, increasing borrowings by ¥3,072 million on a net basis. - FY2018-Q2Formalization of funding facilitiesAnnual report
「Overdraft facility limit (¥ thousand) 1,000,000 Total lending commitments (¥ thousand) 2,000,000 Outstanding borrowings (¥ thousand) － Available amount (¥ thousand) 3,000,000」
The Company disclosed that it had established total funding facilities of ¥3 billion to raise working capital efficiently and ensure flexibility and stability in funding, with no outstanding borrowings as of the end of the second quarter. Financial covenants were also disclosed. - FY2017RestatedAnnual report
「To further expand its business going forward, the Company will need to continue raising funds for aircraft introductions and other purposes. It plans to secure these funds through external financing and future retained earnings.」
The Company continues to plan to secure funds required for aircraft introductions and route development through external financing and retained earnings. - FY2016First statedAnnual report
「The Company plans to secure these funds through external financing and future retained earnings. If it is unable to secure sufficient funds in a timely manner, it may be unable to capture business opportunities such as launching new routes, which could affect results and delay or require changes to its business plans.」
The Company identifies securing external financing and retained earnings needed for aircraft introduction and route expansion as a risk.