News
All Nippon Airways gives Myanmar another try
May 13th 2016
The government of Myanmar has approved Asian Blue Aviation Co Ltd, a joint-venture between Japan’s ANA Holdings (49%) and local Shwe Than Lwin Co Ltd’s Golden Sky World (51%), to operate for 50 years in the Myanmar air transport sector. Read More » The joint-venture partners will bring start-up capital of $70.8 million to the table.
In 2014, ANA announced plans to acquire Myanmar carrier, Asian Wings International, owned by Air Bagan and Sun Far Travels, but later pulled out of the deal citing increased competition.
Myanmar is considered a high potential growth market in the Asia-Pacific, although doubts remain about its political environment, infrastructure and the pace of economic growth in the emerging nation.
But ANA has big ambitions in Indochina. In January, it signed a Memorandum of Understanding to acquire an 8.8% stake in Vietnam Airlines for $108 million. For ANA, Myanmar and Vietnam could be attractive markets as Japanese companies are seeking opportunities in the two nations as they seek to reduce their exposure to China. ANA also has the money to support any growth opportunities. In its latest financial year, it doubled its net profit to 78.1 billion yen ($722 million).
Myanmar’s Department of Civil Aviation this week said construction of a $1.5 billion “international gateway and logistics hub for the region”, designed to handle 12 million passengers a year, would start later this year. The new airport will be 50 miles north of Yangon, with completion expected by 2020.
