ANA - All Nippon Airways (NH, Tokyo Haneda) has abandoned plans to acquire a 49% stake in Asian Wings Airways (Yangon) citing an increasingly competitive Myanma domestic market.
"Later, competition between new and old airlines in Myanmar has intensified, bringing rapid changes in the external environment, and calling into question the assumptions made at the time of the original decision. Ultimately, negotiations for the capital participation with Asian Wings Airways were unable to reach an agreement, and the investment plan was canceled as a result," ANA said in a Tokyo bourse filing.
ANA's Board of Directors first decided to acquire the 49% stake in August 2013 for USD25million. The funds were sourced from the Japanese carrier's successful IPO in 2012 which raised USD1.8billion.
Asian Wings operates an A321-100 and three ATR72-500s on scheduled flights throughout Myanmar as well as to neighbouring Thailand.
