Japan’s Fair Trade Commission (JFTC) has given the green light for All Nippon Airways’ (ANA) takeover of Nippon Cargo Airlines (NCA). ANA announced their wish to purchase NCA from Nippon Yusen Kabushiki Kaisha in 2023.
Shinichi Inoue, All Nippon Airways CEO, previously said:
“We expect the networks of ANA and NCA to complement each other. The aim is to enhance our competitive advantages by fully utilising the operational capabilities of both carriers and to offer convenient options for customers.”
Nippon Cargo Airlines is Japan’s sole cargo-only carrier. Their fleet, made up of eight Boeing 747-8Fs, covers 13 Japanese airports.
Previous concerns
In a media statement released on 30 January, the JFTC disregarded concerns about the takeover’s impact on competition, specifically routes between Japan and the US, China, Singapore, Thailand, Taiwan, and Europe.
The JFTC had initially questioned the competition for large cargo on routes between Japan and Los Angeles International and Chicago O’Hare airports. The competition authority pointed out that ANA would have a market share of 30% in Los Angeles and 35% in Chicago. Therefore, the ANA-NCA partnership would have the most capacity in both areas.
However, ANA Holdings proposed a block space agreement with rival freighter carrier Polar Air Cargo. They even appointed an economist and a lawyer to oversee the agreement. This was the catalyst leading up to the approval by the JFTC.
Despite that, Chinese and Singaporean competition authorities are yet to give the green light to the acquisition. The JFTC says they are working with the relevant agencies in those countries. A similar situation transpired in 2023, when Chinese and Japanese competition agencies delayed ANA’s purchase of NCA.
ANA Holdings seem to be monopolising Japanese aviation, recently announcing new routes to Europe in the summer for customers to look forward to.
Do you think the takeover should go ahead? Let us know in the comments!
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