All Nippon Airways (ANA) received approval for its planned takeover of Nippon Cargo Airlines (NCA) of Japan’s Fair Trade Commission (JFTC).
JFTC initially rejected the proposed takeover because of the concern that the agreement would limit competition on services from Japan to the Chicago area and the Los Angeles area.
The Competition Authority said the two in the total cargo market – excluding large and dangerous goods – would have a market share of about 30% to the Los Angeles area and 35% to the Chicago area. They would rank the first in terms of the capacity of both of these areas.
To strive the regulator, the two airlines agreed that they would provide a block space agreement to compete the truck’s air freight and appoint an advocate and an economist to monitor the agreement.
JFTC said the measures “create an effective check so that the group of companies involved cannot freely affect prices”.
However, the agreement is still awaiting approval of competition authorities in China and Singapore.
Ana first announced its plans to buy Boeing 747-8 truck operator NCA at the Nyk Shipping Group in March 2023.
The Post Japan approves Ana’s takeover of Nippon Cargo Airlines on the air freight week.
