All Nippon Airways (ANA) has received approval from Japan’s Fair Trade Commission (JFTC) for its acquisition of Nippon Cargo Airlines (NCA), overcoming initial competition concerns.
JFTC initially opposed the deal, citing potential restrictions on competition for cargo services to Chicago and Los Angeles. The regulator noted that, excluding large and dangerous goods shipments, the combined market share would be around 30% for Los Angeles and 35% for Chicago, making ANA-NCA the top capacity provider on these routes.
To address these concerns, ANA and NCA agreed to a block space arrangement with rival freighter carrier Polar Air Cargo and committed to oversight by a lawyer and economist to ensure fair pricing.
Despite JFTC’s approval, the deal still requires clearance from competition regulators in China and Singapore.
ANA first announced plans to acquire NCA from NYK shipping group in March 2023, but the process has faced multiple delays, pushing the expected completion date to March 2025. ANA attributed these setbacks to ongoing regulatory approvals.
NYK opted to sell NCA due to the high costs of operating the airline. NCA currently operates eight Boeing 747-8 freighters and owns five 747-400 freighters leased to ASL and Atlas Air.
ANA, which operates six Boeing 767 freighters and two Boeing 777 freighters, expects the acquisition to significantly enhance its international cargo network and services.