ANA Holdings reportedly plans to purchase 49% stake in Asian Wings Airways for under JPY3.0 billion (USD30.6 million) as it continues its international strategy to capture the fast growing passenger demand particularly in Southeast Asia, where rapid economic growth is expected. According to reports from Nikkei and NHK, the decision would mark ANA's first strategic investment under its current business strategy with the carrier looking for growth opportunities in Asia outside Japan by investing in local peers as growth for travel demand in its home market is expected to slow. Asian Wings Airways was established in 2011 and currently operate domestic services in Myanmar.
ANA Holdings to purchase 49% stake in Asian Wings Airways: report
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Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
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However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.
Korea-Japan: LCCs are poised to overtake full service airlines for first time in Northeast Asia
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