Japanese shipping line Nippon Yusen Kaisha (NYK) has agreed to sell its air cargo transportation business to compatriot airline All Nippon Airways (ANA). One of the largest shipowners in Japan has sealed a memorandum of understanding that will see ANA acquire all shares in freighter operator Nippon Cargo Airlines (NCA), with the transaction expected to close by October 1 this year, reports Splash247.
At a time when rivals such as MSC, Maersk and CMA CGM are in the early stages of setting up aviation divisions, NYK, which has had a long history in air cargo, explained the ongoing cost of running the cargo airline as the reasoning behind the sale.
“The continuous introduction of new aircraft to expand the operation and maintenance system, and the continuous training of personnel engaged in operation and maintenance required a considerable expenditure.
“In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs,” NYK said.
NCA was established in 1978, with NYK onboard as a major shareholder since its establishment. In 2010, NYK took full ownership of NCA with the aim of becoming a comprehensive logistics company offering ocean, land, and air transportation. The company currently operates a fleet of eight Boeing 747-8 freighter aircrafts and owns Boeing 747-400 freighters that are operated by ASL and Atlas Air.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe