Is VN gonna leave ST because of ANA?
#1
Original Poster
Join Date: Oct 2014
Location: NYC
Programs: Delta Diamond
Posts: 36
Is VN gonna leave ST because of ANA?
Is VN gonna leave ST to join *A after ANA buys nearly 9% of VN?
From Vietnam Airlines FB post today:
ANA GROUP AND VIETNAM AIRLINES AGREED BUSINESS AND CAPITAL PARTNERSHIP- ANA Group makes a Strategic Investment to acquire 8.8% stake in Vietnam Airlines-
Tokyo/Hanoi, January 12, 2016 The ANA Group, Japans largest airline group and Vietnam Airlines, the leading airline in Vietnam have entered into a Memorandum of Understanding (MOU) for the ANA Group to acquire a stake in Vietnam Airlines of approximately 8.8% worth 2,431 billion Vietnamese dong (US$108 million).
The partnership will also provide for the ANA Group and Vietnam Airlines to enable both to take maximum advantage of the increasing demand for air services in the Asian market and, in particular, in the Cambodia-Laos-Myanmar-Vietnam group of countries which has one of the highest growth potentials in the region.
In addition, the ANA Group will dispatch one member to the board of Vietnam Airlines and will also provide Vietnam Airlines with operational and management knowhow to help support service quality.
Vietnam Airlines currently operates 66 flights weekly on ten routes between Japan and Vietnam. ANA operates fourteen flights weekly on two routes.
Implementation of the partnership is subject to necessary approvals being obtained from Vietnamese government authorities and the conclusion of definitive agreements concerning the business and capital partnership between the ANA Group and Vietnam Airlines.
From Vietnam Airlines FB post today:
ANA GROUP AND VIETNAM AIRLINES AGREED BUSINESS AND CAPITAL PARTNERSHIP- ANA Group makes a Strategic Investment to acquire 8.8% stake in Vietnam Airlines-
Tokyo/Hanoi, January 12, 2016 The ANA Group, Japans largest airline group and Vietnam Airlines, the leading airline in Vietnam have entered into a Memorandum of Understanding (MOU) for the ANA Group to acquire a stake in Vietnam Airlines of approximately 8.8% worth 2,431 billion Vietnamese dong (US$108 million).
The partnership will also provide for the ANA Group and Vietnam Airlines to enable both to take maximum advantage of the increasing demand for air services in the Asian market and, in particular, in the Cambodia-Laos-Myanmar-Vietnam group of countries which has one of the highest growth potentials in the region.
In addition, the ANA Group will dispatch one member to the board of Vietnam Airlines and will also provide Vietnam Airlines with operational and management knowhow to help support service quality.
Vietnam Airlines currently operates 66 flights weekly on ten routes between Japan and Vietnam. ANA operates fourteen flights weekly on two routes.
Implementation of the partnership is subject to necessary approvals being obtained from Vietnamese government authorities and the conclusion of definitive agreements concerning the business and capital partnership between the ANA Group and Vietnam Airlines.
#5
Join Date: Dec 2006
Location: NRT / HND
Programs: AA EXP, NH Plat, Former UA 1K
Posts: 5,562
That's about what I was thinking as well when I first saw the thread. 9% is a relatively tiny ownership portion. If they are only getting one board seat then I don't see them being terribly influential on alliance changes, nor do I see any need for VN in *A when you already have SQ, TG, and BR with very good coverage of SE Asia, VN doesn't offer anything long haul either that would be unique.
#7
Join Date: Jul 2008
Programs: QF, VN, SQ, SPG, IHG PG
Posts: 453
I think there would be little change on VN's everyday operations, they seemed to have forged strong partnerships with fellow ST members, such as KE, CI, CZ and MU along with various partnerships with other ST members. I agree that we will see VN switch code-share partners from JL to NH, though nothing drastic, VN won't be leaving ST anytime soon as *A is already quite strong with a few powerhouses in the region. ST needs VN more than *A needs VN.