Japan’s Peach Aviation cuts capital amount

Peach Aviation (MM, Osaka Kansai) has joined the likes of Air Do, Solaseed Air, Spring, Skymark Airlines, and ZIPAIR Tokyo in reducing its capital stock and capital reserve amounts in order to benefit from reduced taxation.

In a statement, the ANA Holdings budget carrier said its registered capital would be reduced from JPY7.515 billion yen (USD65.4 million) to JPY100 million (USD870,000) while its capital reserves would be cut from JPY7.485 billion (USD65.1 million) to zero.

“The entire amount by which the capital and capital reserve amounts are decreased will be reclassified as other capital surplus. This current matter is a reclassification of account titles in the net assets section of the balance sheet and will not generate any changes in the amount of net assets. In addition, there will also be no changes in the total number of issued shares or number of shares held by shareholders,” it said.

The move, which was agreed to during a general shareholder meeting on February 7, 2022, will become effective from March 30, 2022.

A budget carrier, Peach is owned by ANA Holdings (77.9%), First Eastern Aviation Holdings Limited (7.0%), and INCJ, Ltd.(15.1%). Its full-year financial results for the fiscal year ending March 31, 2021, showed a net loss of JPY29.505 billion (USD265.5 million at the time) over triple that for the year-previous. However, revenue for the April-December 2021 period was JPY24.5 billion (USD213.1 million), which is higher than the overall amount recorded for FY2020 – JPY22 billion (USD191.4 million).