Photo: Vietnam Airlines
$109 million deal to be completed in July.
Japan’s largest airline group, ANA Holdings, finalized a deal to become shareholder in Vietnam Airlines on May 28.
Valued at $109 million, the deal was signed in the presence of Prime Minister Nguyen Xuan Phuc and Japanese Prime Minister Shinzo Abe in Tokyo, the national flag carrier announced.
ANA Holdings will acquire 8.8 per cent of Vietnam Airlines in a purchase scheduled for July. “Finding a partner for business and capital tie-ups is a key part of our efforts to improve and increase our competitiveness in international markets,” said Mr. Pham Ngoc Minh, CEO of Vietnam Airlines. “The cooperation with ANA, which has among the best customer services in the world, will help us be more confident in upgrading our fleet with the latest new generation aircraft, expand markets, improve service quality and be more efficient.”
Under the partnership ANA and Vietnam Airlines will launch code-share arrangements and a shared mileage program from the start of the 2016 winter timetable, which begins on October 30.
The code-share would cover 30 major domestic routes within Japan and Vietnam and ten international routes between the two countries. “It is our great honor to share with Vietnam Airlines our many years of experience, including assistance in the provision of improved services and contributing to mutual growth and development,” said Mr. Shinya Katanozaka, President and CEO of ANA Holdings. “Through this business and capital partnership ANA will contribute to the further promotion of economic, cultural and personal ties between Japan and other Asian states while also promoting travel to Japan.”
Starting from the 2016 winter schedule, frequent flyer program members will be able to accrue mileage on code-share routes as well as redeem miles on award flight reservations on each airline’s operated flights.
The two carriers also plan to combine a range of services, including passenger check-in, cargo loading, ground handling services, catering, aircraft maintenance and other services at airports in Japan and Vietnam.
Under the partnership, ANA it will take a seat on the board of Vietnam Airlines and also provide it with know-how regarding both business and flight operations and help to further improve service quality, contributing to the growth and development of the airline.
Vietnam Airlines’ fleet now stands at 89 aircraft, including two new generation aircraft - the Airbus A350 and Boeing 787. Its network covers 29 international and 20 domestic destinations and it conducts 66 flights a week to Narita and Haneda Airports in Tokyo, Chubu Airport in Nagoya, Kansai Airport in Osaka, and Fukuoka Airport.