ANA Closes Deal With PAL

As Clear As The Rising Sun

28 January 2019

ANA Holdings Inc. and PAL Holdings Inc. will seal an investment deal next week in Tokyo.

The equity investment will initially comprise 9.5 percent stake in Trustmark Holdings of the Lucio Tan Group which owns 97.71% of PAL Holdings and controls 84.67% of Philippine Airlines (PAL) valued at $95 million with options to take up to 40% share of the company and possible management contract in the future tailored in a similar fashion but tweaked investment agreement the company previously agreed with San Miguel Corporation.

PAL Holdings also control Air Philippines Corporation (APC) through Zuma Holdings and Management Corporation which holds 99.97% of PAL Express.

In April 2012, San Miguel Equity Investments Inc. (SMEII), a wholly owned subsidiary of San Miguel Corporation (SMC), acquired 49% equity interest in Trustmark. Trustmark then owns 97.71% of the Company, which in turn beneficially owns 84.67% of Philippine Airlines Inc.

Thereafter, San Miguel Corporation entered talks with ANA in November 2013 for possible investment stake with the airline but the talks did not pushed through after a falling out with the Lucio Tan Group in 2014.

PAL however entered code share agreements with ANA in November 2014, and Lucio Tan group continued negotiations with the Japanese carrier leading to PAL Holding's equity restructuring in 2018 to pave the way for the foreign investment this year. Additional paid-in capital of ₱25.340 billion from its 2017 financial statement was added to its equity to wipe out capital deficit of ₱29.074 billion in the same year.

PAL said the removal of its deficit was part of the company’s intentions to welcome a new strategic investor that will buy “less than 40% of the company.”

According to source, Trustmark will initially sell 10% of its share to ANA Holdings followed by more due diligence of the airline for the acquisition of additional shares up to 40% with management contract.

The Lucio Tan Group through Trustmark Holdings directly owns 84.6% of Philippine Airlines, while 5.4% belongs to the Government of the Philippines and 10% to private investors.

Collectively, the Lucio Tan Group owns 98.91% of PAL, through a direct ownership in 98.56% of PAL’s shares and an indirect ownership in 0.35% of PAL’s shares through an 82.33% direct ownership in PR.

Nikkei Asian Review earlier broke the news based on news leaks scooped by Philippine Daily Inquirer,  and reported ANA Holdings Inc. is considering investment in PAL Holdings.

"There is continuing discussion. Contract has not been signed yet. So there is nothing to disclose." PAL President and Chief Operating Officer Jaime Bautista said Monday.

Corporate insider however disclosed on condition of anonymity that some of its officers are already booked to fly Tokyo next week without elaborating further.

ANA reported last week it is in talks with PAL’s parent company PAL Holdings about making an investment in the Philippine’s flag-carrier, but stated that no concrete decision has been made yet.

Meanwhile, Lucio Tan did not confirm or deny the talks when interviewed by reporters on the sidelines of the Bangko Sentral ng Pilipinas’ annual reception for the banking community last week. PAL Holdings also denied in a disclosure to the Philippine Stock Exchange (PSE) that it has signed agreement with ANA.

PAL Holdings has market capitalization of US$3.11 billion with US$223 million subscribed shares. PAL assets are valued at US$3.2 billion (₱180 billion) while liabilities were reported at US$ 3 billion (₱166 billion) as of December 31, 2017 based on PSE disclosures.

ANA Enters Codeshare Deals With PAL

1 October 2014

Tokyo - All Nippon Airways (ANA) and Philippine Airlines (PAL) announced Wednesday that they have agreed to establish commercial partnership between points in Tokyo and Manila as well as domestic services for both countries.

Both companies will sell tickets for all the code-sharing flights, including those operated by the other company.

Passengers on code-sharing flights will be able to take Philippine Airline's shuttle buses linking terminals 2 and 3 at NAIA.

Both airline advise travelers a two hour layover time to connect and move between NAIA terminals using the airport shuttles.

The codeshare agreement commences on 26 October 2014. In the agreement, ANA will codeshare on all Philippine Airlines-operated services to Japan and Philippine domestic services while PAL will also codeshare on ANA services to and from Japan as well as its domestic services.

ANA and PAL will jointly have access to 37 routes in Japan and the Philippines.

Codeshare routes are as follows:

ANA operated by Philippine Airlines
Cebu – Tokyo Narita
Manila – Bacolod
Manila – Caticlan
Manila – Cebu
Manila – Davao
Manila – Dumaguete
Manila – Fukuoka
Manila – Kalibo
Manila – Laoag
Manila – Nagoya
Manila – Osaka Kansai
Manila – Puerto Princesa
Manila – Tacloban
Manila – Tagbilaran
Manila – Tokyo Haneda
Manila – Tokyo Narita

Philippine Airlines operated by ANA
Fukuoka – Komatsu
Fukuoka – Miyazaki
Fukuoka – Okinawa
Fukuoka – Osaka Itami
Fukuoka – Sendai
Nagoya – Miyazaki
Nagoya – Sapporo
Nagoya – Sendai
Tokyo Haneda – Iwakuni
Tokyo Haneda – Kagoshima
Tokyo Haneda – Kumamoto
Tokyo Haneda – Manila
Tokyo Haneda – Miyazaki
Tokyo Haneda – Nagasaki
Tokyo Haneda – Osaka Itami
Tokyo Haneda – Sapporo
Tokyo Haneda – Tokushima
Tokyo Narita – Komatsu
Tokyo Narita – Manila
Tokyo Narita – Niigata
Tokyo Narita – Osaka Itami
Tokyo Narita – Sapporo
Tokyo Narita – Sendai 

Earlier PAL entered similar deals with Etihad Airways of Abu Dhabi for reciprocal joint services.

ANA Flies 787 To Manila

1 May 2014

ANA flew today inaugural B787 service to Tokyo's Haneda Airport.                         Image Courtesy of Reonel Cordova ©

ANA, PAL Begins Haneda Flight Today

30 March 2014

All Nippon Airways and Philippine Airlines starts Haneda services today with ANA869 flight departing Tokyo's Haneda airport at 9:55AM arriving NAIA at 1:30PM. 

The Inaugural flight is being serviced by Boeing 767-300ER (JA618A), while Philippine Airlines flight PR 422 to Haneda left Manila at 8:55AM and scheduled to arrive Haneda at 1:55PM. PAL's inaugural flight was serviced by Boeing 777-300ER (RP-C7772). 

ANA's return flight to Japan is scheduled at 2:40PM arriving Haneda at 7:55PM, while PAL return flight PR 422 from Haneda is scheduled to depart 15:20PM arriving NAIA at 6:45PM. 

Haneda becomes PAL’s fifth gateway to Japan following Narita, Fukuoka, Osaka and Nagoya making the flag carrier the biggest Philippine operator to and from Japan with 47 flights a week. PAL currently operates 21 weekly flights to Narita, 5 times a week to Fukuoka, 7 to Nagoya and 7 to Osaka. Meanwhile, ANA flies 21 flights from Narita and Haneda. 

On the same date, low cost airline Cebu Pacific also launch flights to Narita and Nagoya adding its destinations in Japan to three, Osaka, Nagoya and Narita.

ANA Arrives Manila

First Foreign Airline at Terminal 3

March 1, 2011

MANILA - For the first time since the government took possession of the Ninoy Aquino International Airport terminal 3 (Naia 3) seven years ago, a foreign airline finally began operations here on Sunday, promising what could be the start of the terminal’s full rehabilitation and commercial use for both domestic and international operations. 

All Nippon Airways (ANA), the second-largest airline company in Japan, landed on Sunday as scheduled at the NAIA Terminal 3 from Narita, the first foreign airline to do so after it flew yesterday 108 passengers, 14 of which were seated in business class.

Majority of the passengers were Japanese, with the aircraft departing from Narita Airport at 5:55 p.m. local time and arrived at NAIA Terminal 3 at 9:50 p.m. using a 214-seater Boeing 767-300 plane for daily service to Tokyo.

“This is an historic occasion in line with President Aquino’s promise to lure more tourists to come to the Philippines,” said Manila International Airport Authority general manager Jose Honrado.

Honrado also disclosed that starting March this year, a team would start conducting tests on Terminal 3’s other facilities to make way for two other foreign airlines slated to Join ANA before June this year.

Honrado revealed that Cathay Pacific and Singapore Airlines are only waiting for the completion of the test before they start constructing their own passenger lounges, check-in counters, computer system and others.

The Terminal was constructed by Takenaka, the Japanese construction firm that was awarded contract for the passenger terminal’s rehabilitation at a cost of almost P2 billion.

ANA flight Begins March 1

As Japanese Traffic Grows 10%

February 12, 2011

Japan's second biggest carrier All Nippon Airways (ANA), will have an inaugural flight on February 27, with daily flights starting on March the first from Narita to Manila and vice versa using a Boeing 767-300 equipment.

Currently, there are four airlines flying to Japan accounting to a combined 61 weekly flights to the Philippines with Philippine Airlines (PAL) holding the biggest share at 32 flights a week, followed by Japan Airlines for 14, Delta Air Lines for 12 and Cebu Pacific for 3.

But for Narita - Manila service, Japan Airlines has the biggest market share with two flights daily, followed by Delta Airlines and PAL. With the arrival of ANA, there will be a total of 34 weekly flights out to Narita airport, followed by Nagoya with 12 (Delta & PAL), 10 out of Osaka (PAL and Cebu Pacific) and 5 out of Fukuoka (PAL).

The Japanese traffic represent a weekly capacity of 18,071 seats with Japan remaining the third largest tourist market for the Philippines.

Tourists arrival grew 10.39 percent from 2009 to 358,744 visitors in 2010.

ANA flies to Manila

Schedules flight on March 2011

August 7, 2010

TOKYO - Japan's second biggest airline, All Nippon Airways Company (ANA) announced Friday that it will re-launch services between Narita International Airport and Jakarta next January and inaugurate its first-ever Narita-NAIA route in March 2011.

The carrier will offer round-trip flights daily on both routes as part of the alliance goal to strengthen its presence in Asia. ANA is a Star alliance member.

The new route expansion will strengthen ANA's Southeast Asia network as it compliment its connections with Star alliance partner United Airlines for destinations to the United States. United Airlines is not allowed to fly Manila and Jakarta from tokyo.

ANA resumes flights to the Indonesian capital for the first time in more than 12 years.

ANA currently operates flights from Narita to Bangkok, Singapore and Ho-Chi-Min City and recently announced the launch of two additional services from Haneda to Bangkok and Singapore which will start in October.

the airline will operate a total of nine daily flights that service seven routes to five Southeast Asia destinations.

Meanwhile, the airline said it will suspend flights between Nagoya's Chubu International Airport and Shanghai's Pudong airport from Oct. 31 until next spring.

The new network will provide an increase in the number of choices available to passengers traveling between Japan and Southeast Asian destinations and will improve the convenience of transit passengers connecting at Narita to routes to and from North America.