ANA Holdings, expecting the largest loss in its history of JPY500 billion (USD 5 billion) will announce its business restructuring plans on October 27. We learned its outline as follows:
In order to reduce its payrolls by 3,500 persons by fiscal 2022, ANA will request companies such as Toyota Motor to accept its employees on loan as well as freezing new hires
Salary of its employees will be cut by 5% per month, no plans for winter bonuses for them
International flights, if they restart, will be concentrated to Tokyo Haneda first
The fleet size of larger aircraft will be reduced by 30%, deferring to accept the third example of A380 by a year
In the meantime, ANA will launch a new subsidiary to make use of data of its mileage program members for new merchandising.
Personnel expenses account for about 30% of its fixed cost. Toyota and others are reportedly starting to plan to accept excess ANA employees.
ANA’s ambitious business expansion plans turned to backfire with the COVID-19 pandemic and resultant slowing down of the aviation market.
ANA will try to survive in the reversed business environment by securing JPY 500 billion by issuing its subordinated bond.
