Japan’s All Nippon Airways Keen On Partnership with Philippine Airlines

All Nippon Airlines

MANILA – Japan’s All Nippon Airways (ANA) is keen on partnering with Philippine Airlines (PAL) to access the local carrier’s domestic destinations.

Hideaki Izumi, ANA general manager, told reporters last week that the Japanese airline is holding discussions with PAL about a partnership, but added that the talks are “not yet concrete.”

Izumi said the discussions do not involve an code sharing agreement, “but maybe we can cooperate something with PAL.”

“I’m not sure yet about the details. Like maybe a special cooperation agreement with them which is easy for both companies. They need our domestic flights and we need their domestic flights. So that would be the mutual benefit, I think,” Izumi said.

This means ANA¬†could tap PAL to transfer passengers to the local carrier’s Philippine destinations. In turn, AN, which will fly to Haneda from Manila daily, complements an existing service between Manila and Narita.

Ramon S. Ang, PAL president, had said ANA was no longer interested in investing in PAL, and instead was keen on a partnership.

ANA, which is flush with cash, is looking to acquire foreign carriers as part of a three-pronged growth strategy to counter Japan’s declining economy and population. Last year, the Japanese carrier raised $1.8 billion by issuing 991 million shares, bringing total shares to 3.5 billion.

The Centre for Asia-Pacific Aviation (CAPA) had said the proposed partnership between PAL and ANA will result in limited synergies.

“Practically, if ANA were interested in PAL to access the low-cost market in the Philippines, PAL would be a complicated choice as the carrier contentiously abandoned its [low-cost carrier] strategy to focus on the full-service segment,” CAPA said.


Source: Darwin G. Amojelar, InterAksyon.com