ANA plans to transfer employees to Toyota Motor
ANA Holdings will ask several companies, including Toyota Motor Corp., to accept the secondment of employees, it has been learned.
The contents of a business restructuring plan, set to be announced Tuesday by ANA Holdings Inc., the holding company of All Nippon Airways Co. (ANA), have been revealed. By fiscal 2022, it plans to reduce the number of its employees by about 3,500.
The company faces an urgent need to cut personnel costs, which account for 30% of its fixed costs. At the same time, it must also secure employees in anticipation of the end of the novel coronavirus pandemic. ANA Holdings is believed to have concluded that Toyota Motor is able to accept secondment because of its financial scale and its capacity to take in employees.
For the 2020 fiscal year ending in March 2021, ANA Holdings is expected to post a record net loss of about ¥500 billion, as opposed to a net profit of ¥27.6 billion in the previous fiscal year. The company will carry out structural reforms to prepare for a prolonged slump in aviation demand.
In fiscal 2021, the company expects to cut costs by ¥80 billion through measures such as reducing the number of employees and selling aircraft.
The reduction of about 3,500 jobs will be realized through natural retirement, support for job changes and a freeze on hiring. According to the securities report of ANA Holdings, the entire group employed 46,000 people as of the end of March.
The company also plans to sell about 30 aircraft, mainly large models. As many as 59 large aircraft, such as the Boeing 777, have low fuel efficiency and are expensive to maintain.
ANA Holdings also plans to speed up the creation of other revenue sources. It plans to expand its so-called platform business to provide financial services by using customer data collected through its travel and financial operations.
Regarding international flights, which have seen a sharp drop in passengers, the company plans to prioritize resuming flights to and from Haneda Airport, due to high profit margins and high demand for international flights there.
Some flights from Narita Airport to Europe and Asia will be suspended for the time being.
Domestic flights will be concentrated at Haneda and Itami airports. ANA Holdings will also use Peach Aviation Ltd., a low-cost carrier under its wing, to promote joint operations with ANA.