Japan's ANA on 'wartime' footing to implement COVID reforms

ANA Holdings is making all-out efforts to plow through turbulence triggered by the coronavirus pandemic and fly high again through a new restructuring plan worked out in an unusual manner. With the global airline industry hit hard by the international health crisis, ANA suffered a year-on-year plunge of more than 90% in the number of passengers carried and anticipates its worst-ever net loss of 510b yen ($4.91b) in fiscal 2020 through March. In the spring of this year, Shinya Katanozaka, ANA's president and CEO, stood dumbfounded at an unprecedented sight -- a nearly empty airport lobby. All Nippon Airways is the core of the ANA group. Aviation has repeatedly experienced steep drops in passenger demand for flights following "event risks" such as natural disasters, war and terrorism. Whenever Katanozaka walks through an airport, ANA employees know who he is and speak to him out of concern about their future as other airlines, especially those in the US and Europe, are resorting to workforce cuts. In a message to employees, Katanozaka moved to assuage such fears. "We will protect jobs," he said, stressing airline employees, who are responsible for the safety of flights and passengers, cannot do that "if they are worried about their jobs." But it is not easy to promise job protection when no exit from the pandemic is in sight. Still, Katanozaka made that tough decision. "We are in a war," ANA executives and other senior officials all say. Indeed, airlines are in a critical life-or-death situation. They must figure out how to overcome the impact of the pandemic while protecting jobs. Agility holds the key to dealing with that dual task as a delay in decision making could cause a serious blow to the company.<br/>