NARITA: ANA Holdings Inc. plans to hold employee wage talks with its labor union as the company is struggling with falling air travel demand amid the coronavirus pandemic, informed sources told Jiji Press on Friday.

The parent of All Nippon Airways plans to discuss wage and other employment conditions with the labor union while committing to maintaining jobs, the sources said.

The talks are part of a new business program that ANA came up with to prepare for a prolonged coronavirus impact, the sources said.

The company thinks that a fully recovery in air travel demand will not come until at least fiscal 2021, according to the sources.

Under the new business program, ANA plans to provide leave allowances to ground staff on furlough, while applying for employment adjustment subsidies to the government.

ANA will implement an additional cut in executive pay following a reduction in place since late January.

The company will also reduce hiring of new graduates in spring next year and postpone introducing new aircraft and equipment. It will simplify in-flight services.

In addition, ANA will seek rescheduling of payments to suppliers of engines and other equipment. It will increase its cash reserves after securing 950 billion yen from banks.

JIJI Press