ANA Introduces Unpaid Leave System

TOKYO, June 6, 2003 - ANA will introduce a system of voluntary unpaid leave for all employees in Japan from August 1st this year. Volunteers will be sought according to operational need, and leave apportioned among them on the basis of the workload of each department. Leave will be allocated in blocks of one month.

Initially, ANA is hoping that 30-50 volunteers per month will take advantage of the system, which in principal allows them to spend the time in any way they wish. The merit of the system to ANA is not only a better motivated workforce who have the opportunity to fit their work around their private lives, but also a saving of over ´100 - 200 million in fiscal 2003.

At the start of the current fiscal year, April 1st, ANA initiated its Three Year Cost Reduction Plan, aimed at saving ´30 billion between fiscal 2003 and 2005. ´20 billion of this will be achieved through reducing personnel costs, including: a 10% cut in retirement and pension benefits, a rethink of employee pay, other benefits and conditions, and a reduction in the workforce by 1,200 through natural attrition and improvements in productivity.

The option of taking unpaid leave is a further measure of ANA’s determination to react as flexibly as possible to changing conditions. Financially, it will assist in mitigating the effects of the Iraq War and SARS outbreak, as have the adjustments to capacity on international services since April this year.