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In 2018 ANA is planning flights from Myanmar with Venture
At ANA Holdings Inc., we have made an investment in a new Myanmar based air operator that plans to launch international flights in 2018 as the Asian airlines seek to meet Asian economic growth needs. Shinya Katanozaka, CEO of Japan's biggest airlines, said in an Tokyo meeting on Monday that ANA has a 49 per cent share and a small business owns the rest.
At the outset, the firms made a total of $150,000 at risk, he said. Japan's airline is growing abroad as more populations rise to the sky in emerging countries like Myanmar, where the International Monetary Fund is predicting the fastest rate of 8.1% this year.
The ANA is focusing on international flights from the South East Asia country after the company quoted the increased competitive situation in Myanmar in 2014 for its ruling to call off a 49 per cent acquisition of the German company Asiatic Wings Airways Ltd. Also ANA, which acquired a shareholding in Vietnam Airlines Corp. this year, is considering to add flights around the world, said Katanozaka.
This year the airline started flights to Phnom Penh and will take a flight to Mexico City next year. Coca-Cola Co. and Unilever Plc join the expansion in Myanmar after the US relaxed some penalties in the US four years ago when the US was moving towards democratisation after five decade-long wars.
In 2013, the Japonese company resumed flights to Yangon in Myanmar and is the only company to operate flights directly between Japan and the state. In Myanmar, the company will start with some planes and is planning to expand the navy, he said. ANA' s capital expenditure will go up if the company will add planes, said Katanozaka.
The company is also extending the fleets of its 100% affiliate company Vinilla Air Inc., which commenced operations two years ago and uses Airbus Group SE A320 for national and international flights. It has 10 planes and is planning to increase its fleets to 25, according to the medium-term schedule of ANA until March 2021.
"We want to launch medium-range flights," said Katanozaka. This year Vanilla is a founder member of the Value Alliance, which includes low-cost airlines such as Scoot of Singapore Airlines Ltd. and Nok Airlines Pcl in Thailand. At the end of the year, ANA had risen 0.6 per cent to 316.7 Japanese yen on the Tokyo Stock Exchange, posting a 9.5 per cent decline this year.
During the same time frame, the Nikkei 225 Stock Average increased by 0.6 per cent.