Japan’s biggest airline ANA Holdings said it has proposed to the labour unions at its main carrier ANA to seek workers to leave voluntarily after a collapse in air travel due to the coronavirus pandemic.
The airline will also cut winter bonuses to zero and reduce monthly salaries, a spokesman said, adding that it will start “sincere discussions” with the union on workforce reductions.
ANA said redundancies would be offered to some of its 15,000 employees but did not give a specific figure.
The airline will also allow the employees to take as long as two years off from work without salaries, the spokesman said.
ANA will streamline domestic flights and reduce office space as part of a business overhaul, according to the Nikkei daily, which first reported the news.
Like other airlines worldwide, ANA has had to slash flights as countries imposed travel restrictions to halt the spread of the coronavirus. So far, the carrier has relied on loans from its banks and the government to help it cope with the slump.
In the three months to June 30, ANA posted a loss of 159 billion yen
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.