Regional Round-Up
ANA reverses losses as it steps back from Myanmar
September 1st 2014
All Nippon Airways (ANA) has announced a net income of US$3.5 billion yen (US$34.4 million) for its first quarter, to June 30, compared with a loss of 6.6 billion yen for the same months in 2013. Read More » First quarter revenue increased by 10% year-on-year, to 386.8 billion yen, although operating costs rose, mainly due to fuel price increases, the airline said. “Sales growth was supported by good demand for domestic and international air travel and diversification into other airline related businesses, including cargo,” said ANA
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Two days before it released its first quarter results, ANA cancelled its planned 49% investment (US$25 million) in Myanmar carrier, Asian Wings Airways Limited (AWA), after negotiations for AWA’s capital participation in the deal failed. ANA unveiled its investment in AWA in August 2013.
“Lately, competition between new and old airlines in Myanmar has intensified, bringing rapid changes in the external environment and calling into question the assumptions made at the time of the original decision,” ANA said. “Ultimately, negotiations for the capital participation with AWA were unable to reach agreement and the investment plan was cancelled as a result.”
