All Nippon Airways has notified its labor union of a plan to slash annual pay for its about 15,000 ordinary employees by 30 percent on average, sources have said.
The major airline would cut salaries and pay no bonuses this winter, as its earnings continue deteriorating amid the coronavirus pandemic, the sources said Wednesday.
The company halved its summer bonuses.
It would be the first time since at least 1962 for the company to pay no summer or winter bonuses. Meanwhile, it is the first time the company has sought to cut salaries since fiscal 2000.
The ANA Holdings Inc. unit will maintain pay cuts implemented in April for its directors and managers. It also plans to increase retirement benefits under its early retirement system.
In the April-June quarter, ANA Holdings suffered a group net loss of ¥108.8 billion, due to a plunge in income from passenger flights as many international flights were canceled.
To shore up its financial base, the parent company has secured funds totaling about ¥1 trillion, including a credit line, and is considering a public offering of shares worth some ¥200 billion. On top of these measures, the company is tackling the urgent task of cost reduction.
Later this month, ANA Holdings is expected to announce restructuring plans that call for reducing aging aircraft and loss-making flight routes, as well as payroll costs.