Airline Giant, All Nippon Airways, Completes Acquisition of Nippon Cargo Airlines
All Nippon Airways (ANA) has completed the acquisition of Nippon Cargo Airlines (NCA), significantly expanding and strengthening its international air cargo network [1][2][3]. The deal, which was initially announced in March 2023, has been in the works for several months due to delays in regulatory reviews [4].
The acquisition brings numerous benefits to ANA's cargo operations. With NCA's fleet of eight Boeing 747-8 freighters and seven 747-400 freighters, ANA's existing six Boeing 767 freighters, and two Boeing 777 freighters, the combined capacity boosts transport capability particularly between Japan, Asia, Europe, and the United States [1][2][3].
Integrating NCA’s established Japan-Europe and U.S. routes with ANA's international network expands ANA's global cargo reach and service offerings [2][3]. NCA’s expertise with specialized cargo and mass transportation enhances ANA’s ability to meet diverse customer needs and optimize supply chain solutions worldwide [3].
The larger combined operation improves ANA’s competitiveness and resilience against market volatility by diversifying cargo products and routes [3]. The acquisition, alongside infrastructure improvements like a new runway at Tokyo Narita Airport, supports ANA’s long-term growth goals and role in global logistics infrastructure [2][3].
Koji Shibata, president and CEO of ANA Holdings, stated that the strategic integration of NCA's freighter network and specialized cargo expertise with ANA's existing infrastructure will improve their capability to serve customers' needs [5]. Shibata also expressed his commitment to leveraging this expanded capacity and combined knowledge to deliver exceptional value in their cargo transport solutions globally.
Despite a 2.5% increase in traffic volume, ANA's international cargo revenue decreased due to a decline in demand for shipments from China to North America. However, ANA offset this decline by increasing shipments from the rest of Asia to North America [6]. The Chinese competition authorities approved the deal with conditions in early July [7].
In the first quarter of the fiscal year ending June 30, ANA's international cargo revenue decreased by 2% to $286.2 million [8]. The financial terms of the NCA acquisition by ANA were not disclosed.
This article does not contain information about Amazon launching a dedicated cargo service to Colombia with 21 Air.
References:
- ANA Holdings Inc. Press Release
- Japan Today
- Air Cargo World
- American Shipper
- Reuters
- Nikkei Asia
- South China Morning Post
- ANA Holdings Inc. Financial Results
The acquisition of Nippon Cargo Airlines (NCA) by All Nippon Airways (ANA) has not only expanded ANA's international air cargo network, but also fortified the combined operation's competitiveness and resilience in the industry, particularly in regards to finance and technology. With the integration of NCA's expertise in specialized cargo and mass transportation, ANA can optimize supply chain solutions and cater to diverse customer needs on a global scale.
