NYK gains control of Nippon Cargo Airlines
Nippon Yusen Kaisha, Japan’s largest shipping group, is acquiring All Nippon Airways’ shareholding in Nippon Cargo Airlines under an agreement that will give NYK a majority control of the top freight airline in Japan.
All Nippon Airways’ management today passed a resolution to transfer its shares of Nippon Cargo Airlines to NYK. Terms of the transaction have not been disclosed.
NYK’s directors have adopted a resolution to make Nippon Cargo Airlines a consolidated subsidiary of NYK.
NYK and All Nippon Airways had each held 27.6 percent of the airline’s shares. Following conclusion of their agreement, NYK will expand its air cargo business with Nippon Cargo Airlines as an NYK subsidiary in which it holds a 55.2 percent shareholding.
The move means NYK will join the small number of major multimodal transportation groups that own shipping line as well as airline businesses. Among this group are Evergreen (parent of Eva Air), A.P. Moller-Maersk (parent of Maersk Air), Hanjin (parent of Korean Air) and Temasek (parent company of APL and Singapore Airlines). On June 30, however, A.P. Moller-Maersk announced a decision to sell the scheduled services and charter activities of Maersk Air.
Nippon Cargo Airlines is ranked by the International Air Transport Association as the world’s 17th-largest air cargo carrier in international scheduled freight ton-kilometers, ahead of Northwest Airlines, American Airlines and United Airlines.
“The market for air cargo transport in Asia, centered on the Chinese market, and the market for air cargo transport between Asia and countries in North America and Europe are expected to continue to grow significantly,” NYK said in a statement today.
NYK said that until about the end of October, NYK, All Nippon Airways and Nippon Cargo Airlines “will confer on the details about the start of operations under the new framework.”
All Nippon Airways, which also runs its own airline operations, will provide support for Nippon Cargo Airlines’ flight and maintenance-related services.
Set up in 1978, Nippon Cargo Airlines operates a fleet of 12 Boeing 747 freighter aircraft on a network extending from Japan to the rest of Asia, the United States and Europe.
The other major shareholders are Kawasaki Kisen Kaisha (with a 13.2 percent share) and Mitsui O.S.K. Lines (also with 13.2 percent).
A spokesman for NYK in Tokyo said it was not clear whether “K” Line and MOL would retain their shareholdings in Nippon Cargo Airlines. “It depends on their decision,” he said.
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