Japan's LCCs reducing capital amid pandemic-induced slump
Peach Aviation said Friday it will reduce its capital to Y100m, aiming to pay less in taxes to make up for cumulative losses due to the pandemic. Peach’s move was the latest in a series of announcements by Japanese low-cost carriers (LCC) on capital reductions following a steep decline in the number of travelers due to COVID-19. Peach, which is under the wing of ANA Holdings Inc., will reduce its capital from Y7.52b to Y100m on March 30. It will also withdraw all its capital reserves totaling Y7.49b and re-register them as additional paid-in capital. Zipair Tokyo and Spring Airlines Japan, both LCC arms of Japan Airlines, have already unveiled plans to reduce their respective capital and capital reserves to Y100m by the end of next month. Companies with capital of Y100m or less are regarded as small businesses and have lighter tax burdens.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-02-21/unaligned/japans-lccs-reducing-capital-amid-pandemic-induced-slump
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Japan's LCCs reducing capital amid pandemic-induced slump
Peach Aviation said Friday it will reduce its capital to Y100m, aiming to pay less in taxes to make up for cumulative losses due to the pandemic. Peach’s move was the latest in a series of announcements by Japanese low-cost carriers (LCC) on capital reductions following a steep decline in the number of travelers due to COVID-19. Peach, which is under the wing of ANA Holdings Inc., will reduce its capital from Y7.52b to Y100m on March 30. It will also withdraw all its capital reserves totaling Y7.49b and re-register them as additional paid-in capital. Zipair Tokyo and Spring Airlines Japan, both LCC arms of Japan Airlines, have already unveiled plans to reduce their respective capital and capital reserves to Y100m by the end of next month. Companies with capital of Y100m or less are regarded as small businesses and have lighter tax burdens.<br/>
