ANA Holdings has revealed some major investment moves, as it confirmed the purchase of a 9.5% strategic stake in Philippine Airlines and placed an order for 38 narrowbody aircraft from Airbus and Boeing. ANA’s 9.5% stake in PAL Holdings is valued at US$95m. The shares will be acquired from Trustmark Holdings, which is PAL’s largest shareholder. The deal is “subject to certain closing conditions,” the carriers said. A PAL spokesman said the carriers aim to close the deal in the Q1 of 2019. ANA said the PAL investment signals its belief in “the dynamism of the Asian region and the great potential” of PAL. “We believe [PAL] is in an excellent operational position to capitalise on both the strong uptick in air traffic growth as well as the vibrant, expanding Philippine economy,” ANA Holdings CE Shinya Katanozaka said <br/>
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ANA reported a profit decline for the 9 months through Dec 31, 2018, although it cited an improvement in the December quarter as a positive sign. ANA Holdings posted a net profit of JPY106.8b (US$97m) for the 9-month period. This was down 30% from a JPY152.9b profit in the same period a year earlier. However, ANA said its fiscal Q3 yielded an operating profit of JPY51.4b, which was an improvement of JPY500m year-on-year. “This is a great turning point and a good sign for further profitability,” ANA Holdings CFO Ichiro Fukuzawa said. While revenue was up in the 9-month period, costs also rose. Other factors in the year-on-year decline were one-off items such as a gain last year from the inclusion of LCC Peach as a subsidiary, and a special cost this year related to a US class action settlement. <br/>
Ethiopian Airlines has announced a major restructuring of its US network, adding frequencies as well as shifting gateways starting this summer. The carrier will launch a 3X-weekly Addis Ababa Bole International-Houston George Bush Intercontinental Boeing 787 service, which will replace its current Los Angeles route. Houston flights will be routed via West Africa. Ethiopian said the new Houston flights will be the only connection between Houston and Africa, and will facilitate travel of the African community in the Houston area, as well as oil and other companies doing business on the continent. Existing Addis Ababa-Washington Dulles services will be increased from current daily to 10X-weekly flights. Addis Ababa-Chicago O’Hare flights will be increased from 3X- to 5X-weekly. <br/>
Ethiopian Airlines is now the continent’s largest airline by fleet size, passenger numbers, revenue and profit — an astonishing success story that has left its main competitors, South African Airways and Kenyan Airways, languishing in its contrails. But the airline has grown so fast that its main hub airport — Bole International in Addis Ababa — failed to keep pace. Built in 2005 to handle 5.5m passengers annually, more than 10m travellers now meander slowly - very slowly - through Bole’s congested security checks every year, putting unbearable pressure on the airport’s limited facilities. But that’s all supposed to change with the official opening this year of an expanded passenger terminal designed to accommodate 22m passengers. <br/>
Air NZ expects much weaker earnings in its 2019 financial year, it said Wednesday, citing higher costs after problems with some Rolls-Royce engines. The carrier said it expects pre-tax earnings of between NZ$340m (US$232.59m) and $400m for the year to June 30, against initial guidance of $425m to $525m. Air NZ is one of several Boeing 787 operators affected by maintenance issues on Rolls-Royce's Trent 1000 engines. Problems with a deteriorating compressor in the engines had forced a number of airlines to ground flights. Earnings will take a hit of about $30m to $40m from the resulting schedule changes, Air NZ said. The carrier also said revenue growth has slowed, though lower jet fuel costs offer some relief. <br/>
SIA inaugurated a digital innovation lab in Singapore Tuesday, bearing the name 'KrisLab'. The lab builds on the airline's digital innovation blueprint that was launched in 2018, and serves as a collaborative workspace for the SIA Group employees to develop ideas and work with various parties. Group CE Goh Choon Phong says more than 180 ideas were submitted by its employees, with 50 of those ideas being developed into prototypes. These include predictive maintenance solution, chatbots, mobile applications, virtual reality training, fatigue management, and utilising blockchain technology in payment transactions. Asked how KrisLab supports the group's 3-year transformation plan, Goh explains that KrisLab's presence aids in enhancing customer experience, improves its overall operations, and drives efficiency during flight. <br/>