ANA Holdings cancels equity investment in Asia Wings Airways Limited

ANA Holdings stated (30-Jul-2014) that during a Board of Directors meeting on 30-Jul-2041, it decided not to proceed with its planned equity investment in the Myanmar-based airline Asian Wings Airways Limited (AWA), first announced on 27-Aug-2013. The carrier explained, "The Board of Directors first decided, on August 27, 2013, to make an equity investment of US$25 million (about ¥2.5 billion) and to acquire a 49% stake in AWA during fiscal year 2013. 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 AWA were unable to reach an agreement, and the investment plan was canceled as a result....ANAHD has abandoned its plan to make this investment. No change has been made to ANAHD's earnings forecast for FY2014, as published on April 30, 2014". CAPA - Centre for Aviation, in an article entitled 'Myanma Airways ATR 72-600 and Air Mandalay MRJ90 orders further escalate battle for Myanmar market', earlier reported (23-Jul-2014) that ANA had decided against pursuing a partnership with and acquiring a stake in Asian Wings, which was first announced in Aug-2013. The report, however, noted that ANA is interested in potentially partnering with and investing in another Burmese carrier with Air Mandalay being a logical option. [more - original PR] [more - CAPA Analysis]