Airline News
ANA continues its equity hunt, prepared for cargo recovery
November 20th 2015
ANA Holdings, parent of All Nippon Airways (ANA), is still looking to bolster its hold on Asian traffic through equity stakes in other Asian carriers and joint venture agreements, ANA chief, Shinya Katanozaka, has told the Wall Street Journal. Read More » "We are approaching a number of Asian airlines," Katanozaka said, specifying it was currently considering investments in Vietnam Airlines, though it also may deepen its cooperation with Garuda Indonesia and Philippine Airlines with equity stakes. ANA would be limited to a minority share, but Katanozaka believes the dividends it received and the ability to work together more closely could boost returns.
Myanmar also remains on the agenda after the scrapped plans for a stake in Asian Wings Airways in 2014. ANA was going to take a 49% stake, but pulled out over concern about intensified competition. Katanozaka said ANA “was trying to find another partner in Myanmar."
ANA has the funds needed to fuel this growth. The group reported a net profit of $448 million in the April to September period, up 51% year-on-year, with revenue up nearly 7%. Katanozaka said the outlook remained bright with strong demand and fuel prices set to remain low.
Meanwhile, ANA airline chief, Osamu Shinobe, told Reuters last week ANA could convert more B767 passenger aircraft into freighters in the next few years, a strategy that will help it keep costs low, as opposed to acquiring new aircraft such as the B777F, as it grows its cargo business amid a downturn that saw the Asia-Pacific air cargo segment grow a modest 0.3% year-on-year in September (based on International Air Transport Association [IATA] data).
Shinobe said ANA Cargo wanted to make the most out of its hub in Naha, Okinawa, located within four flying hours from much of Asia, enabling it to provide next-day delivery in most key markets.
