APD | ANA Holdings buys stake in pal holdings

By APD writer Melo M. Acuna

MANILA, Jan.30 (APD) -- ANA Holdings Inc. (ANA HD), parent of All Nippon Airways (ANA), Japan’s largest and 5-star airline for over five years, will invest US$95 million in PAL Holdings, Inc. (PAL Holdings) and acquire 9.5% of PAL Holding’s outstanding shares.

PAL Holdings is the parent of Philippine Airlines, Inc. (PAL), the Philippines’ flag carrier and the largest airline in the country.

In a statement released late Tuesday afternoon, Mr. Jose E. L. Perez de Tagle, PAL’s vice president for Corporate Communications said ANA HD will acquire the shares from Trustmark Holdings Corporation, which is owned by the Lucio Tan family and is the largest shareholder of PAL Holdings.

The agreement shows ANA HD’s believe in the dynamism of the Asian region and the great potential of the Philippines’ multi-awarded flag-carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN.

Mr. Perez de Tagle added the investment by ANA begins a new era of growth for Philippine Air Lines which has begun a full-scale expansion program that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents.

“This campaign has coincided with an emphasis on product transformation that saw PAL recognized recently as the World’s Most Improved Airline for 2019,” the PAL statement added.

According to the Mid-Term Corporate Strategy for FY 2018-2022, the ANA Group is expanding its international group network, which is considered its main growth pillar, and strengthening its partnerships with foreign airlines to provide further convenience to its passengers.

“We are honored and excited that a premier airline group such as ANA HD has decided to purchase shares in PAL Holdings. The Philippines and Japan have a long-standing relationship with complementary strengths. This week, in fact, we commemorate the 70th year of Philippine Airlines’ service to Japan, dating back to the launch of our first Manila-Tokyo on January 26,1949,” Jaime J. Bautista, PAL Holdings and Philippine Airlines president said.

“Asia is a key growth market and we believe Philippine Airlines is in an excellent operational position to capitalize on both the strong uptick in air traffic growth as well as the vibrant, expanding Philippine economy. We look forward to expanding our business relationship with Philippine Air Lines so we can continue to serve our passengers even better,” Shinya Katanozaka, President and CEO of ANA Holdings, Inc. added.

Philippine Airlines currently operates 84 flights weekly on nine routes to Japan and ANA operates 14 flights weekly on two routes to the Philippines.

The two carriers have code share operations on Japan-Philippine routs and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations, the statement further disclosed.

(ASIA PACIFIC DAILY)