ANA looks for international acquisition: talks with Philippines Airlines productive but not end game

Japan's All Nippon Airways (ANA) is flush with funds and looking to acquire foreign carriers as part of a three-pronged growth strategy to counter Japan's declining economy and population. But marriages are seldom consummated without a decent period of courting. ANA has quietly flirted with Indian carriers and is now whistling sweet tunes to Philippines Airlines (PAL), which is looking for foreign airline investors. That fact was confirmed by none other than PAL part-owner San Miguel Corporation, perhaps looking to leverage that news with other potential buyers.

But the possible synergies between ANA and PAL are few. PAL has contentiously exited the Philippines' key low-cost segment and its long-haul ambitions will be challenging given the competition, its lack of geography or scale for connecting traffic, and a low profile without a global alliance or numerous partners. As ANA continues to search for what would be one of Asian aviation's few major cross-border acquisitions, more flirting should be expected.