Japan’s All Nippon Airways (ANA) first set the aviation news buzz after it was reported to be in talks for an investment in Philippine Airlines. The Tokyo-based airline has now confirmed the investment, followed by announcement new orders for Boeing and Airbus jets.

In a joint statement, ANA Holdings ended speculation among the aviation industry confirming the acquisition of 9.5% stake in PAL Holdings in a deal worth USD $95 million. "This purchase underscores ANA HD’s belief in the dynamism of the Asian region and the great potential of the Philippines’ multi-awarded flag carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN region," the statement said.

In its bid to become a 5-star Skytrax airline, Philippine Airlines has been adding new routes and upgrading its fleet and services. “We are honored and excited that a premier airline group such as ANA Holdings has decided to purchase shares in PAL Holdings. The Philippines and Japan have a long-standing relationship with complementary strengths,” PAL president Jaime Bautista said.

For ANA, the investment in Philippine Airlines is part of the carrier’s strategy to tap into the growing aviation markets in Southeast Asia. Along with Philippine Airlines, ANA also has an 8.8% stake in Vietnam Airlines it acquired in 2016.

“Asia is a key growth market and we believe Philippine Airlines is in an excellent operational position to capitalize on both the strong uptick in air traffic growth as well as the vibrant, expanding Philippine economy,” ANA President and CEO Sinya Katanozaka said.

New Aircraft Orders

Along with the purchase of a stake in Philippine Airlines, ANA also announced it will order 38 jets from Boeing and Airbus in deals worth USD $4.33 Billion combined.

ANA will order 20 Boeing 737 MAX jets worth USD $2.3 Billion, with an option for 10 additional jets. It will also order 18 Airbus A320neos worth USD $2 Billion. The Airbus A320neo jets were ordered by ANA Holdings for its budget arm Peach Aviation, which operates an all Airbus fleet. The orders are scheduled to be delivered between the years 2021 to 2025.

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