Japanese airline group, ANA Holdings, sets to downsize its capital from ¥900 million to ¥100 million by March. This move to downsize will help lessen the airline’s tax responsibilities. Once applied, this will change the company’s status. Under Japanese tax law, ANA will become a small or a midsize company. Shareholders approved this move on January 12 while the reduction will happen on March 31.
The COVID19 pandemic was tough for airline companies. ANA reported in October that it expected ¥510 billion annual loss for the fiscal year until March 2021. ANA’s statement said that the company dealt with “a significant decline in passenger demand”. ANA’s numbers plummeted from its ¥27.6 billion net profit from the previous fiscal year.
The airline company’s CEO Shinya Katanozaka said that the company will “continue to make efforts to increase revenue and profits”. There were also reports that ANA planned to slash 3500 jobs.
Its rival Japanese Airlines also reported a loss of around ¥230 billion for the fiscal year until March 2021.
ANA’s Structural Reform
Aside from downsizing, the airlines will also apply structural reforms to the company. ANA Holdings is going to transfer ANA Sales to ANA X by April. ANA X will oversee the company’s mileage management. The company is looking to strengthen its travel business using customer data via their mileage programs and airline tickets.
Travel Companies Downsizing
Downsizing in response to the COVID19 pandemic is becoming popular. Other Japanese travel companies also took this strategy including JTB. JTB will downsize from its ¥2.3 billion capital to ¥100 million. This drastic move will transform the industry leader to becoming a small business.
JTB’s shareholders already approved of this move on February 12. And like ANA, it is going to take effect by March 31. The freed-up capital is going to be used to absorb losses from the current year. Restaurant operators Kappa Create and Chimney are also set to reduce capital to ¥100 million.
Amp up your entertainment with Trisha Hershberger
Father’s Day with Bob Guiney
Headlines5 days ago
Trudeau Reportedly Planning to Ease US-Canada Border Restrictions
Airline News4 days ago
United Airlines: No Need to Furlough Flight Attendants This Fall
Headlines3 days ago
Saw Mill Log Flume Malfunctions at Six Flags Great Adventure in New Jersey
Airline News5 days ago
Working Groups Formed to Resume International Travel