Strategic investment to help national flag carrier improve its international competitiveness.
On January 12 the ANA Group, Japan’s largest airline group, and Vietnam Airlines, the country’s national flag carrier, entered into a Memorandum of Understanding (MoU) whereby the former will acquire an 8.8 per cent stake in the latter for VND2.431 trillion ($108 million).
The deal provides for the two parties to take maximum advantage of the increasing demand for air services in Asia and, in particular, in the Cambodia-Laos-Myanmar-Vietnam group of countries, which has among the highest growth potential in the region.
“Asia is a key growth market for the ANA Group as we expand our international footprint and Vietnam Airlines makes the ideal partner for us because we share the same high standards and approach to customer service and efficiency,” said Mr. Shinya Katanozaka, CEO of ANA Holdings Inc. “We look forward to completing this strategic investment and launching our partnership so we can serve our passengers even better.”
“We appreciate the cooperation with ANA Group in the administration and long-term development of Vietnam Airlines,” said Mr. Pham Viet Thanh, Chairman of Vietnam Airlines. “ANA is one of the leading airlines in the region and in the world. The cooperation will help Vietnam Airlines acquire new management technologies, expand markets, improve service quality, and increase its competitiveness in international markets. I firmly believe the cooperation will enhance the value, brand, and image of Vietnam Airlines.”
The ANA Group will have one seat on Vietnam Airlines’ board of management and will provide the carrier with operational and management know-how to help support service quality.
Vietnam Airlines currently operates 66 flights weekly on ten routes between Japan and Vietnam, while ANA operates 14 flights weekly on two routes.
The implementation of the partnership is subject to necessary approvals being obtained from Vietnamese authorities and the conclusion of definitive agreements concerning the business and capital partnership.