Published on : Monday, May 30, 2016
Today, The ANA HOLDINGS (hereinafter ANAHD), Japan’s largest airline group, and Vietnam Airlines, the leading airline in Vietnam, have exchanged the signed agreements on their Business and Capital Partnership.
ANAHD and Vietnam Airlines have concluded a final contract for a business and capital partnership. This follows the signing of a Memorandum of Understanding in January 2016 between the two companies and will see ANAHD acquire a stake of approximately 8.8% in Vietnam Airlines for a total of 2,431 billion Vietnamese dong ($US109 million). The share subscription is scheduled to take place in July.
Under the partnership, ANA and Vietnam Airlines will launch codeshare arrangements and a shared mileage program from the start of the 2016 winter timetable which begins on October 30. The codeshare will cover 30 major domestic routes within Japan and Vietnam and 10 international routes between the two countries which aims to improve passenger convenience. Starting 2016 winter schedule, each frequent flyers program members will be able to accrue mileage on codeshare routes as well as redeem miles on award flight reservations on each airline’s operated flights.
The two airlines also plan to collaborate in 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. As part of the partnership, ANAHD will dispatch one member of the board of Vietnam Airlines and will also provide Vietnam Airlines with know-how regarding both business and flight operations and help it to further improve service quality, contributing to the growth and development of the airline.
Shinya Katanozaka, President & CEO of ANAHD, said: “It is our great honor to share with Vietnam Airlines our many years of experience including assistance for the provision of improved service quality and to contribute to the mutual growth and development of the companies. Through this business and capital partnership ANAHD will contribute to the further promotion of economic, cultural and personal ties between Japan and other Asian states while also promoting travel to Japan”
Pham Ngoc Minh, President & CEO of Vietnam Airlines said: “Finding a partner for business and capital tie-up is a key part in the effort of Vietnam Airlines to improve and increase competitiveness on international markets. The cooperation with ANA, one of the world’s best customer service provider will help us to be more confident to upgrade fleet with newest generation aircraft, to expand the market, to improve service quality and to be achieve higher efficiency.”
Along with Cambodia, Laos and Myanmar, Vietnam is among a core group of South-east Asian countries with particularly high growth potential. Under its mid-term business strategy, ANA Group is working to expand into new growth areas and invest strategically in Asia, principally through airline-related businesses.
Vietnam Airlines currently operates 89 airplane including 2 modern generation aircraft of airbus A350 and Boeing 787 – Dreamliners. Its network covers 29 international and 21 domestic destinations and serves 66 flights per week to Narita and Haneda airport in Tokyo, Chubu Airport in Nagoya, Kansai Airport in Osaka and Fukuoka Airport.
Note that this partnership agreement is subject to obtaining necessary approvals from Vietnamese government authorities and certain other conditions.