ANA to complete deal for Nippon Cargo Airlines in October

ANA has firmed its agreement with shipping and logistics group NYK to acquire Boeing 747 freighter operator Nippon Cargo Airlines. The share transfer is due to take place at the start of October following approval of NCA’s shareholders and will see the cargo carrier become a wholly-owned subsidiary of ANA. The two companies signed a preliminary deal on the transaction in March this year. “ANA, in order to dramatically enhance its international air cargo network and products and services based in Japan and also with the aim of contributing to the development of global economic activities both in Japan and abroad, expressed its strong desire to add NCA to its business portfolio and integrate and reorganise NCA within the cargo business of the ANA group in the future,” ANA says, in a state exchange announcement. NYK says the cargo operator will be better positioned to grow further within an airline group, which would also in a better position to support NCA with emissions reduction requirements. “The continual introduction of new aircraft to expand the operation and maintenance system, as well as the continual training of personnel engaged in operation and maintenance required considerable expenditures,” NYK says. “In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs.” <br/>