Nippon Yusen Kaisha (NYK) has reached an agreement to sell its air cargo transportation business, Nippon Cargo Airlines (NCA), to All Nippon Airways (ANA).
The transaction is set to be completed by 1 October, pending regulatory approval.
NYK, which has been a major shareholder in NCA since its establishment in 1978 and acquired full ownership in 2010, explained the ongoing cost of running the cargo airline as the reasoning behind the sale.
The price of the sale has yet to be confirmed.
“The continuous introduction of new aircraft to expand the operation and maintenance system, and the continuous training of personnel engaged in operation and maintenance required a considerable expenditure,” reads the Japanese shipping line’s recent advisory.
The “volatile business environment of airfreight transportation” has made it challenging for NCA to “expand its business scale at a level commensurate with such costs”, NYK added.
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ANA has decided to add NCA in a bid to enhance its international air cargo network, products, and services based in Japan, and to contribute to the development of global economic activities both in Japan and abroad.
Under the agreement, ANA will acquire all shares of NCA from NYK in a single transaction, with a particular acquisition method and other terms and conditions to be determined through continued discussion between NYK and ANA.
Last month, NYK signed a time charter contract with Siemens Gamesa for a crew transport vessel (CTV) for an offshore wind power generation facility.
The facility is being developed at Ishikari Bay New Port by Green Power Ishikari, which plans to construct, operate, and maintain 14 offshore wind turbines in a sea area of around 500 hectares.