ANA-Ethiopian JV Possible In Future

October 7, 2015

ANA and Ethiopian Airlines could one day be interested in a joint venture on routes between Japan and Africa but not at the moment, executives from the carriers said.

ANA has joint ventures with United in North America and Lufthansa in Europe, so Africa would theoretically be a logical next step.

Ethiopian Airlines chief executive Tewolde Gebremariam said volumes between Japan and Africa first needed to increase and that the two carriers, both members of Star Alliance, had to regain market share from Gulf carriers.

"It's all about volume," Gebremariam told the CAPA World Aviation Summit in Helsinki.

"How do we regain market share between the two home carriers? When that traffic market share grows, then we will reach a point for a joint venture."

ANA is however trying to improve relations with carriers in nearby countries to reflect increasing traffic flows into Japan from countries such as Thailand, Singapore, China and Taiwan, said Keisuke Okada, senior executive advisor to ANA's chairman.

"We are trying to make better relationships," Okada said, adding that one way to do so was by the use of equity stakes, although he said that was not necessary in order to form an alliance.

Abu Dhabi-based Etihad has attracted attention for its use of equity stakes, in airlines such as Alitalia and Air Berlin, to form its own airline partnerships, rather than going down the traditional route of airline alliances.

"Money is not the only way to make a happy family. Alliances and family are quite similar," Okada added.

(Reuters)