ANA acquires Nippon Cargo Airlines, adds B747Fs to fleet

Following regulatory approval, ANA Holdings (ANAHD) completed the full acquisition of Nippon Cargo Airlines (NCA) from Nippon Yusen Kabushiki Kaisha on August 1 through a simplified share exchange.

The integration of NCA’s large freighter fleet with ANA Group’s extensive network of international passenger and cargo flights will boost transport capacity between Japan and key global markets in Asia, Europe, and the U.S.

ANA currently operates six Boeing 767 freighters and two Boeing 777 freighters, while NCA operates eight Boeing 747-8 freighters. In addition to its 747-8F fleet, NCA also owns seven Boeing 747-400 freighters, which are currently operated by other carriers under lease agreements.

Current data from Planespotters.net indicates that four Boeing 747-400F aircraft are operational with Atlas Air, while two are in service with ASL Airlines Belgium.

This enhancement will not only significantly strengthen the Group's position as Japan's largest combination carrier but also elevate the ANA Group to the world's 14th largest airline group based on cargo transport weight.

“The strategic integration of NCA's freighter network and specialised cargo expertise with the ANA Group's existing infrastructure will greatly improve our capability to serve our customers' needs," says Koji Shibata, president and CEO of ANAHD. “We are committed to leveraging this expanded capacity and combined knowledge to deliver exceptional value in our cargo transport solutions globally.”

Notably, Nippon Cargo Airlines (NCA) is owned by Nippon Yusen Kabushiki Kaisha (NYK Line), a Japanese shipping company. Nippon Cargo Airlines was established as a joint venture between Nippon Yusen and ANA. In August 2005, ANA divested its shareholding, transferring full ownership to Nippon Yusen.

In March 2023, ANA unveiled plans to acquire NCA from Nippon Yusen to bolster its cargo business. Nippon Yusen (NYK Line) announced through a ‘Notice of Basic Agreement on Transfer of Shares in Consolidated Subsidiary’ that it had entered into a basic agreement with ANA Holdings to transfer all shares of NCA.

In July 2023, Nippon Yusen announced that it had executed a definitive agreement with ANAHD to proceed with the transfer of all shares in NCA through a share exchange. Upon completion of the transaction, ANAHD would become the wholly owning parent company, and NCA would become its wholly owned subsidiary.

However, the acquisition deal faced multiple delays before reaching its final stage, with the most recent postponement attributed to ongoing reviews by regulatory authorities, particularly in China.

Nippon Yusen has now confirmed that the share exchange was finalised on August 1, taking effect the same day. As a result, NCA is no longer part of NYK’s consolidated subsidiaries and will operate as a wholly owned subsidiary of ANAHD.

In July this year, China’s market regulator approved ANA Holdings’ acquisition of NCA, subject to conditions. According to a Reuters report, the approval included binding commitments to ensure fair competition in the China–Japan air cargo market.

By combining the ANA Group's international network with NCA's expertise in special commodities and mass transportation using large freighters, ANA will further strengthen its high-quality and competitive services to meet diverse customers' cargo transport needs. The ANA Group will also support customers in optimising their supply chains or business opportunities, aiming to deliver added value through cargo transport, according to a release.

With NCA’s inclusion, ANA Group’s profitability is expected to improve, as the expanded cargo business will enhance its resilience to market fluctuations and changes. Additionally, Narita Airport is set to boost its capacity with the planned construction of new runways, significantly increasing flight movements. In this evolving environment, ANA Group remains committed to sustainable growth and to serving as a vital logistics infrastructure that supports people around the world.

As NCA is now a wholly owned subsidiary company through the share exchange, the financial balance sheet and income statement are planned to be consolidated from the 2nd quarter of fiscal year 2025, the release added.

In the first quarter of FY2025, ANA’s international cargo business saw a 1.5% year-on-year increase in freight carried, reaching 177,000 tonnes, while cargo traffic volume rose 2.5% to 912 million tonne-km. This growth came despite reduced demand for China–North America shipments, as ANA successfully pivoted to meet Asia–North America demand.

However, international cargo revenue declined by 2% to ¥42.2 billion (approximately $285 million). Domestically, both cargo volume and revenue slightly declined. ANA attributed its performance to flexible route adjustments and emphasised the planned integration of Nippon Cargo Airlines.

ANA Cargo recently announced it will begin offering cargo capacity on Kalitta Air's Narita (NRT)–Chicago (ORD) route.