Japanese airline All Nippon Airways Co., Ltd. (ALNPY.PK, ALNPF.PK) Tuesday announced its decision to merge two of its subsidiaries, ANA & JP Express Co., Ltd or AJV and Air Japan Co., Ltd. Or AJX, effective July 1. As per the agreement, AJX will survive as a passenger/cargo company while AJV, the cargo company will be dissolved.
It was on April 1 that All Nippon Airways acquired the rest of ANA & JP shares held by Japan Post Service Co. Ltd., Nippon Express Co., Ltd. and Mitsui O.S.K. Lines, Ltd. All Nippon already owned 51.7% of ANA & JP. On April 2, extraordinary meeting of the Directors signed the merger agreement between subsidiaries and the company expects the approval of the extraordinary meeting of the shareholders on April 16.
The company today said the merger is aimed to build a more flexible operating structure and streamline their operations and it expects minor impact due to the merger.
As of December 31, Air Japan, founded in 1990, had total assets of 1.41 billion yen and 411 employees, while ANA & JP had total assets of 1.89 billion yen and 207 employees. Both the subsidiaries operate Boeing 767 aircrafts.
In its fiscal year 2010-2011 corporate strategy announced on March 19, All Nippon said it would rebuild the business base to accommodate the drastically changing business environment, and achieve the steadily profitable structure. The company also expected to carry out the combination of Air Nippon Network, Air Next and Air Central by October 2010, and eventually consolidate the Group airlines into a three-company system by the end of FY2011.
In Thursday's regular trading session, ALNPY.PK closed trading at $5.81 per share.
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