ANA Holdings to Slash 3,500 Jobs, Transfer Workers, Yomiuri Says

ANA Holdings Inc. will cut about 3,500 jobs by fiscal year 2022, and will seek to temporarily transfer employees to Toyota Motor Corp. and other automakers, Yomiuri reported, without saying where it got the information.

The Japanese carrier will announce a business plan on Oct. 27 that includes the cutbacks and a halt to hiring to slash labor costs, which account for about 30% of the company’s fixed expenses, the newspaper reported.

The global airline industry is facing a painfully slow recovery from the ongoing effects of the coronavirus pandemic. ANA is expecting a record full-year loss of about 530 billion yen ($5 billion), Kyodo earlier reported. The company has plans for about $3.8 billion in subordinated loans from five lenders.

ANA will sell about 30 wide-body aircraft because of their low fuel-efficiency and high maintenance costs, Yomiuri reported. It will also utilize its customer data to offer financial and other services, while arranging code-sharing with its budget carrier, Peach Aviation Ltd., according to the report. In fiscal year 2021, the company will cut about 80 billion yen in costs, the paper said.

Domestic airline Star Flyer Inc. is considering raising about 10 billion yen in capital, the Yomiuri said in a separate report. ANA is the largest shareholder of Star Flyer and holds 17.96% of the carrier.

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.