All Nippon Airways (ANA) has agreed to purchase an 8.8 per cent stake in Vietnam Airlines, signalling the Japanese carrier’s intent to gain a foothold in Southeast Asia’s fast-growing aviation industry.
As part of the deal between ANA and Vietnam Airlines (valued at 2.3 trillion dong/US$108 million), both carriers will codeshare on a number of flights between Japan and Vietnam. The Financial Times has reported that the two airlines will also combine their aircraft maintenance, catering, check-in and ground handling operations at airports served by both parties.
On the customer front, ANA Mileage Club and Lotusmiles – the frequent flyer programmes of ANA and Vietnam Airlines – will be pooled, meaning that members of each programme will be able to earn and redeem miles for flights on both carriers.
Vietnam represents an intriguing opportunity for ANA given that the market is a competitive one, with low-cost carriers (LCC) such as VietJet Air and Jetstar Pacific Airlines based there. It should be noted that Vietnam Airlines does own a 100 per cent stake in the latter, and it is not known if ANA’s deal with the Skyteam carrier could lead to synergy with the LCC too.
The deal is an indication of Japan’s growing interest in the Vietnamese market. As it seeks to reduce its exposure in China, Japan has started pumping more money into Vietnam. Direct investment in Vietnam by Japanese business, according to the Japan External Trade Organisation, tripled to US$9 billion between 2011 and 2014.
For more information, visit ana.co.jp and vietnamairlines.com
Clement Huang
