LCC = low-cost carrier "Peach Aviation", whose business performance is deteriorating due to sluggish air traffic demand due to the new Corona, announced that it will reduce its current capital of more than 7.5 billion yen to 100 million yen. Did.
In addition to rebuilding its financial base, it seems that it also aims to become a small and medium-sized enterprise under the tax system and reduce the tax burden.
“Peach Aviation” continues to be in a difficult business situation, with the final deficit of 29.5 billion yen, the largest ever in the last year's financial results, due to a significant decrease in aviation demand due to the new Corona.
In light of these circumstances, Peach decided at a general meeting of shareholders held on the 7th of this month to reduce the current capital of 7.5 billion yen to 100 million yen.
In addition, it plans to withdraw the entire capital reserve of more than 7.4 billion yen, and these measures will be implemented on the 30th of next month.
Peach says that it is "a measure to ensure the soundness and flexibility of the financial base" with the idea of using these funds to make up for cumulative losses.
Companies are considered to be small and medium-sized enterprises when their capital is 100 million yen or less, and they will be able to receive tax incentives such as corporate tax reduction.
For this reason, it seems that the tax burden will be lightened by this significant capital reduction.