All Nippon Halts 115 Japan Flights on Pilots' Strike (Update3)

March 23 (Bloomberg) -- All Nippon Airways Co. said it will cancel 115 domestic flights today, one-eighth the daily services offered by Japan's second-biggest carrier, as pilots at four unions went on strike to protest pay and labor conditions.

The four unions, representing 501 pilots, voted for a one- day strike to demand higher salaries, increased spending on safety and a halt to Tokyo-based All Nippon's profit growth strategy, said Yuzo Yoshimoto, chairman of Air Nippon Crew's Association.

Today's strike, the first since April 1998, was not supported by the biggest of All Nippon's union, representing 1,507 pilots and engineers, airline spokesman Fumiyoshi Fukumori said.

All Nippon's strategy of reducing spending on the small, propeller-driven planes flown by its subsidiaries ``could cause accidents,'' Yoshimoto said. ``We're protesting the discrimination against subsidiary airlines on pay, labor conditions and pressure on costs.''

The threat to strike is part of the annual negotiations between Japan's employers and their staff that take place in March. All Nippon's industrial action wasn't matched by unions at Japan Airlines Corp., the country's largest carrier. Four unions at Japan Airlines today decided against holding a strike.

All Nippon said it will cancel 115 of 863 domestic flights, and delay 40. International services will not be canceled. Normal operations will resume tomorrow, the airline said.

The three other unions that began the 24-hour strike are the Air Nippon Network Pilot Union, the Air Next Crew's Association and the Air Central Pilots' Union.

All Nippon shares fell 0.7 percent to 425 yen at the 3 p.m. close of trading in Tokyo.

To contact the reporter on this story: Masumi Suga in Tokyo at msuga@bloomberg.net