TOKYO (AFP) - Myanmar domestic carrier Asian Wings Airways has expressed disappointment that Japan's All Nippon Airways has dropped its plan to buy a 49 percent stake in the airline.
"This is a big loss, not only for us but also for other Myanmar local airlines," Asian Wings executive director U Lwin Moe told AFP on July 31, adding that the decision would not cause "any difficulties" for the airline.
ANA Holdings, the parent company of All Nippon Airways, blamed "intensified" competition in Myanmar's aviation sector for the decision.
ANA Holdings announced last year it planned to invest about $25 million in Asian Wings Airways, which launched services in 2011.
But "competition between new and old airlines in Myanmar has intensified... calling into question the assumptions made at the time of the original decision", the Japanese firm said in a statement on July 30.
"Ultimately, negotiations for the capital participation with AWA were unable to reach an agreement, and the investment plan was cancelled as a result."
The move will not affect earnings for the current fiscal year, ANA said.
The announcement came as the Japanese carrier said it had swung back to profitability in the three months to June.
