ANA takes 20% of Skymark Airlines. A loss of independence, or irrelevant as focus shifts to LCCs?

All Nippon Airways (ANA) is urgently looking for overseas growth and international recognition, even seeking to boost awareness with a Star Wars R2-D2 liveried aircraft. But ANA is still relying on its domestic past as a foundation for long term growth, breaking from its international strategy to take a much anticipated 19.9% stake in ailing low cost domestic operator Skymark Airlines.

This is ANA's second strategic reversal after it became the largest shareholder in Starflyer, another all-domestic airline. With an investment of only around USD30 million, the deal was seemingly too good for cash-rich ANA to refuse - but it comes with much baggage.

Crucially, the deal has been announced without any word on how long ANA can remain a shareholder in Skymark, Japan's third-largest carrier but biggest independent airline. Tokyo does not want aviation reduced to an effective ANA/JAL duopoly, but its own regulatory policy failures - and reluctance to let foreigners in - leave few choices. However long ANA has, it must incorporate Skymark into its increasingly complicated brand matrix. Skymark will become the seventh airline brand affiliated with the ANA group.