Japan’s ANA plans to buy stake in Myanmar airline

Agence France-Presse
ANA eyes to capture more of the Southeast Asian market by acquiring a 49% stake in Myanmar's Asian Wings Airways

NEW ACQUISITION. ANA plans to buy part of Myanmar's Asian Wings Airways. Photo by AFP

TOKYO, Japan – All Nippon Airways (ANA) said Tuesday, August 27 it would acquire a 49% stake in a Myanmar airline, the latest foray into the potentially lucrative Southeast Asian market that is rapidly opening up.

“ANA Group will invest $25 million (2.5 billion yen) for AWA (Asian Wings Airways) as part of its stated strategy of expanding into new international markets,” ANA Holdings – the parent of one of Japan’s major airlines – said in a statement.

“As part of the investment, ANA will also work with AWA to improve its operational and on-time performance and support its expansion into markets outside Myanmar,” the company said.

“The acquisition of the stake in AWA represents the first investment in a Myanmar-based commercial carrier by a foreign airline,” it said.

“ANA intends to capture an increasing share of the fast-growing Asian airline market and this investment in AWA will support that strategic goal,” it added.

Shares in ANA Holdings fell 0.47% to 208 yen on the Tokyo Stock Exchange Tuesday after reports of the deal. The formal announcement came after the Tokyo bourse closed, with the benchmark Nikkei index having shed 0.69%.

Asian Wings, based in the commercial hub of Yangon, operates domestic flights connecting 13 cities. It will begin an international service this October. – Rappler.com

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