JAPAN’s ANA Holdings has signed a MoU with Vietnam Airlines to purchase an 8.8 per cent stake in the the South-east Asian state-owned carrier for a sum of 2.43 trillion dong (US$108 million).
This satiates ANA’s ambition to enter into the region’s fast-growing aviation market. It almost transacted a deal for 49 per cent of Myanmar’s Asian Wings Airways for US$25 million in 2013, but backed out because of increasing competition.
Vietnam Airlines, which completed an IPO in 2014, but has yet to list due to insufficient return on equity, in turn gets much-needed funding and a partner with plenty of operational expertise to tap on.
Also, as part of the deal, the two airlines will codeshare on certain routes, have their loyalty programmes combined, and have an ANA-appointed member sit on Vietnam Airlines’ board of directors.
