ANA Mulling 10% Purchase Of Philippine Airlines

Japanese ANA airlines are considering buying 10% of Philippine Airlines.

This news has triggered a stock market surge for the Pacific carrier, rising 33% of its value in a day.

ANA A380
The new ANA A380 is painted like a Hawaiian Green Sea Turtle, for its new route to Hawaii. Photo: ANA

Who are Philippine Airlines?

Known as the flag carrier of the Philipines, they operate a mixed fleet of 67 Airbus and Boeing aircraft; Airbus A320, Airbus A321, Airbus A321neo, Airbus A330, Airbus A350, and Boeing 777-300ER.

Route map
Philippine Airlines Route Map (International). Source: Wikipedia Commons

The airline was famously cut down to size in the late 90s during the Asian financial crisis. The airline was forced to reduce many of its international routes and become an almost exclusive domestic carrier. However, the journey back has been long and hard, only ending their receivership period in 2007 after finally making a profit, and winning the ‘most improved’ award in the 2018 awards.

They have long since longed for a return to form as a premier airline, and this deal might just give them that.

ANA Mulling 10% Purchase Of Philippine Airlines
Business Class onboard their Boeing 777-300ER. Source: Carlo Salgado / Wikimedia

What are the details of the deal?

ANA has revealed that they are considering spending 10 Billion Yen, or $91 million USD, to acquire 10% of Philippine Airlines. ANA has always been very interested to expand its footprint outside of Japan, where they face competition from their duopoly rival Japan Airlines and an aging population that travels less every year.

Philippine Airlines would welcome the investment in funds, using it to greatly expand their fleet and services to combat aggressive market activities of low-cost carriers in the region. With more and more people flying throughout Southeast Asia, Philippine Airlines sees an opportunity for them to become a flag carrier that rivals even Singapore, Cathay or China Southern.

ANA Mulling 10% Purchase Of Philippine Airlines
Philippine jet is seen from above at LAX. Source: Laird Kay

They could expand their international services, their fleet of aircraft over 100 planes and increase their staff to match pre 90s level.

The deal still needs the OK from Philippine Airlines’ parent company, PAL Holdings. Senior officials are currently in negotiation and no news has been released yet.

This movement for airlines to invest in possible synergic airline partners is becoming increasingly common throughout the world. Airlines like Qatar have invested in nearly 10 different airlines, and American carriers (Like American Airlines and Delta) investing greatly in Chinese airlines. For an airline to not invest elsewhere is now a risky strategy as the global web of alliances grows thicker.

ANA Mulling 10% Purchase Of Philippine Airlines
Philippine Airline jet in flight. Source: Wikimedia

We will stay on this story and keep you up to date of any new information.

What do you think of this deal?