ANA group to chop 3,500 jobs from 45,000 workforce by FY 2022
ANA Holdings Inc. plans to cut around 3,500 jobs from around 46,000 employees in the group by fiscal 2022, with demand for travel expected to linger longer due to the coronavirus pandemic, company sources said on Sunday.
The parent company of the major Japanese airline All Nippon Airways Co. intends to reduce its workforce by reducing new hires for the 2021 financial year from April from the originally planned 3,200 to around 600. This provides early retirement and is not a substitute for retirees.
An All Nippon Airways Co. (Kyodo) aircraft
The company is offering early retirement with increased severance pay starting October 14, and is also considering temporarily reducing payroll by moving employees to other companies.
It is expected that fixed costs will be reduced by approximately 75 billion yen ($ 716 million) in fiscal 2021 through measures such as temporary vacation for all employees, cuts in executive compensation and the elimination of winter bonuses.
For the current fiscal year ending March, ANA Holdings expects a record annual net loss of around 530 billion yen, compared to a profit of 27.6 billion yen in the previous year.
It plans to announce its fiscal 2020 earnings outlook and results for the April to September period next Tuesday along with a restructuring plan that would reduce 30 or half its large jet fleet.
There are also plans to raise subordinated loans of 400 billion yen, part of which would qualify as capital, and increased coordination with budget subsidiary Peach Aviation Ltd. announced.
Peach Aviation resumed international flights on Sunday after a seven-month hiatus since March 20, operating one flight from Kansai International Airport near Osaka to Taipei and one flight from Taipei to Haneda Airport in Tokyo.
The Osaka Prefecture-based company is expected to resume flights between Taipei and Narita Airport near Tokyo on Monday after services resumed on all 22 domestic routes in June.
ANA Holdings, one of the two largest Japanese airline groups along with Japan Airlines Co., employed a consolidated workforce of 45,849 people at the end of March, including the travel and commercial businesses.
It had pursued an expansion strategy based on increasing the airfields at Haneda Airport to accommodate more international passengers in the run-up to the Tokyo Olympics, originally scheduled for this summer but postponed for a year.
In the April-June quarter, the company posted a net loss of 108.82 billion yen. JAL also posted a net loss of 93.71 billion yen over the same period and has not yet released a profit forecast for the current fiscal year.
ANA to book record year loss shed half of the big jets due to viruses