Japan's ANA seeks voluntary layoffs and 30% pay cut

All Nippon Airways has proposed to lay off staff as it tries to cut costs in the face of the global travel slump, Nikkei learned Wednesday. The Japanese airline is in discussion with its union over details of a severance package. Management also seeks to reduce monthly pay for around 15,000 employees. The cuts are expected to lower annual compensation by about 30% The coronavirus pandemic has decimated airline earnings and despite securing a 1t yen ($9.4b) credit line in June, ANA has been unable to turn its fortunes around as demand for travel remains weak. Parent company ANA Holdings posted a net loss of 108.8b yen for the April-June quarter and slashed bonuses for its staff by half over the summer. It has said it will not offer any winter bonuses, long a tradition of the company which considers these payouts part of "living wages" for its employees. But such cost-cutting efforts have not been enough to stem the outflow of cash. ANA has also been restructuring its business by selling off equipment, consolidating domestic routes that mainly use Haneda Airport in Tokyo and Itami Airport in Osaka and reducing office space. The proposed monthly pay cuts would be the first in 20 years to affect rank-and-file employees. ANA will offer up to two years of unpaid leave for career improvement activities. It will also continue furloughs begun in the spring. ANA's early retirement program dates back to 1992.<br/>