ANA cancels Myanmar airline deal
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All Nippon Airways (ANA) has cancelled a planned investment in Myanmar’s Asia Wings Airways.
The Japanese carrier signed an agreement in August 2013 to acquire a 49% stake in Yangon-based Asia Wings. But it confirmed this week that the US$25 million deal has now been shelved.
ANA stated that changing aviation market in Myanmar had led to the decision.
“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,” the airline said in a statement.
“Ultimately, negotiations for the capital participation with AWA were unable to reach an agreement, and the investment plan was cancelled as a result.”
At the time, the deal marked the first investment in a Myanmar-based commercial carrier by an international airline. ANA said the deal was in line with its group strategy, “which involves diversification into new growth areas, centred primarily around airline-related businesses particularly in the Asian area”.
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