All Nippon to expand with 48 new aircraft and a 9.5% stake in PAL
04 February 2019
ANA Holdings Inc, the parent of Japan’s All Nippon Airways (ANA) is expanding with 48 new aircraft and a 9.5 per cent stake in PAL Holding, the parent of Philippine Airlines Inc (PAL), the Philippine flag carrier and the largest airline in the Philippines
The board of ANA at its meeting on Tuesday last week decided to place an order for a total of 48 aircraft, which include 30 Boeing 737 MAX 8 and 18 Airbus A320neo. Deliveries are scheduled from FY2021 to FY2025.
ANA, Japan's largest and 5-star airline for six consecutive years, said its decision was based on the economic growth of Asia and emerging countries, with demand in the Asian aviation market and inbound demand on the rise.
ANA HD and sister concern Peach Aviation Limited each selected its own optimum aircraft to fit its strategy to further grow. The specific markets that will be served by the new order are yet to be finalised.
Boeing 737 MAX 8 is more spacious compared to the current aircraft and creates a comfortable atmosphere. The aircraft is also fuel efficient and is expected to improve the efficiency by approximately 15 per cent.
ANA said the Airbus A320neo, which currently serves ANA international routes, was chosen for its excellent fuel efficiency and cruising performance to support Peach's current strategy, and an order for 18 aircraft will be placed.
The Japanese carrier, which is known for its safety record, said it would maintain safety, enhance customer-oriented quality and service, and proactively invest to aircraft to steadily implement growth strategy.
ANA Holdings also announced plans to invest $95 million in PAL Holdings Inc to acquire 9.5 per cent of PAL Holding's outstanding shares. PAL Holdings is the parent of Philippine Airlines Inc (PAL), the Philippine flag carrier and the largest airline in the Philippines.
ANA HD will acquire the shares from Trustmark Holdings Corporation, which is owned by the Lucio Tan family and is the largest shareholder of PAL Holdings.
The ANA Group is expanding its international group network, which is considered its main growth pillar, and strengthening its partnerships with foreign airlines to provide further convenience to its passengers as part of its mid-term strategy for FY2018-FY2-22.
The investment by ANA HD will also offer a new era of growth for PAL, which has embarked on a full-scale expansion programme that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents.
PAL has recently been recognised as the World's Most Improved Airline for 2019.
"Asia is a key growth market and we believe Philippine Airlines is in an excellent operational position to capitalise on both the strong uptick in air traffic growth as well as the vibrant, expanding Philippine economy. We look forward to expanding our business relationship with Philippine Airlines so we can continue to serve our passengers even better," Shinya Katanozaka, president and CEO of ANA Holdings Inc, said.
"We are honoured and excited that a premier airline group such as ANA HD has decided to purchase shares in PAL Holdings. The Philippines and Japan have a long-standing relationship with complementary strengths ... It is a great privilege to celebrate this historic occasion by strengthening our ties with ANA, as we aim to build a relationship that is mutually beneficial with an eye to a more progressive future," Jaime J. Bautista, president of PAL Holdings and Philippine Airlines, said.
ANA operates 14 flights weekly on 2 routes to the Philippines and Philippine Airlines currently operates 84 flights weekly on 9 routes to Japan. The two carriers have codeshare operations on Japan - Philippine routes and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations.