ANA to cut capital of travel subsidiary to lessen tax burden

The coronavirus-hit travel unit of Japanese airline group ANA Holdings will cut its capital 900m yen ($8.4m) to 100m yen in yet another move by a company in the travel sector to downsize for tax purposes. The capital reduction of ANA Sales will lessen its tax burden, as it will then be classified as a small or midsize company under Japanese tax law. Shareholders approved the action on Jan. 12., with the reduction to take effect on March 31. ANA Holdings has also decided to transfer ANA Sales in April to ANA X, which oversees mileage management, as part of the group's structural reform. The group hopes to strengthen its travel business by utilizing customer data obtained through airline tickets and mileage programs in the hope of spurring online sales of travel services.<br/>