ANA forecasts loss, plans 1,080 job cuts

TOKYO >> Japan's All Nippon Airways Co., hit hard by a slump in global air traffic after the attacks on the United States, yesterday forecast a surprise loss for the year and unveiled an aggressive cost- cutting plan. ANA, Japan's second-largest airline, said it would suffer an 11 billion yen ($89 million) group net loss for the year to March, down from a May projection for an 18 billion yen net profit. Citing the impact of dwindling passengers on international routes, ANA said it would cut 1,080 jobs by the end of March 2003 to save costs, bringing its work force to 12,700. The figure represents an additional cut of 400 jobs from a plan announced in 1998 to shed 680 jobs by the end of March 2002. ANA joins rival Japan Airlines Co., Japan's top carrier, in forecasting a full-year loss in the face of a sudden drop in demand for global air travel in the wake of the Sept. 11 attacks in the United States.

Japan insurer Taisei files for bankruptcy

Tokyo >> Taisei Fire & Marine Insurance Co. became the first major insurer to file for bankruptcy because of the Sept. 11 attacks as it couldn't meet $600 million in claims.

The casualty insurer, due to merge with rivals to become Japan's second biggest, was left with 40 billion yen ($325 million) more liabilities than assets. Standard & Poor's Corp. said it was the first insurance failure since the attacks. Taisei's planned partners, Yasuda Fire & Marine Insurance Co. and Nissan Fire & Marine Insurance Co., proposed a bailout. Taisei was too small to shoulder its share of at least $40 billion in insurance claims from the attacks. The failure, which follows the collapse of Belgium airline Sabena SA and the bailout of Swissair Group in Europe, raised concern other insurers failed to sufficiently hedge their exposure.

In other news ...

RALEIGH, N.C. >> - R.J. Reynolds Tobacco Holdings Inc., the No. 2 U.S. tobacco firm, agreed to buy Santa Fe Natural Tobacco Co., the maker of organic and additive-free American Spirit cigarettes, for $320 million in cash. The offer tops Canada's Rothmans Inc.'s bid.

ROME >> Alitalia SpA said it will cut 3,400 jobs, or 14 percent of its work force, and sell three units employing another 1,000 workers as Italy's national airline seeks to return to profitability by 2003.