The recent finalisation of ANA Holdings’ acquisition of all shares in Nippon Cargo Airlines (NCA) is one of the most significant developments to emerge from Asia’s aviation sector in recent years — and it could subtly, but decisively, reposition Japan’s role in global cargo flows.

Together two of the country’s largest cargo carriers promises not only to expand overall capacity, but also to test how effectively the merged operation can streamline processes, unlock efficiencies, and compete with other major players across Asia and beyond.
Global contenders

The ANA Group’s newly enlarged cargo arm now ranks as the world’s 14th largest airline group based on cargo tonne-kilometres (CTK), according to the latest IATA World Air Transport Statistics.

“Narita Airport, which is our freighter hub, is located at the far eastern end of Asia on the Asia–North America route,” the ANA Cargo Reorganisation Preparation Team explained. “This makes it the closest hub to North America. Leveraging this geographical advantage, we aim to capture demand for cargo between Asia and Europe or North America.”

That focus is deliberate. Rather than competing head-to-head on all routes, the group is seeking to optimise its network around strategic corridors where Japan’s location and infrastructure give it a structural advantage.

“We recognise that becoming a competitor to other Asian combination carriers with very large cargo operations will further stimulate competition between companies and contribute to the development of the air cargo industry,” they said.

At a domestic level, the integration reinforces ANA’s position as a core logistics backbone. “As a cargo airline based in Japan, we have a continued responsibility to provide customers with stable transportation services,” they added. Internationally, they plan to “pursue higher profitability by offering even higher-quality services to meet diverse customer needs — including the shared use of airport warehouses and the joint development of new services.”

Cost, capability and customer value

While much of the integration detail is still being shaped, the ANA team has a clear vision of the short- and medium-term priorities.
“At this stage, we do not have specific details to present, but we anticipate the following effects,” they noted. “In the short term: streamline operations by eliminating overlapping functions, thereby enhancing cost competitiveness. In the medium term: integrate and restructure ANA Group’s cargo business — which leverages Japan’s largest international passenger flight network — with NCA’s large freighter operations, in order to provide high-quality and competitive air cargo services.”

That combination of passenger bellyhold and dedicated freighter capacity is what defines a true combination carrier. In practical terms, it allows more flexibility in routing, better load optimisation, and a wider product range — from general cargo to time-sensitive shipments.

The ANA team also pointed to a clear opportunity to enhance value propositions in specialised segments. “We will actively learn from NCA’s expertise in handling special large cargo, strengthening our product capabilities and enhancing customer value from an operational standpoint,” they said. “We expect to meet the demand for large-scale shipments of motorsports vehicles, large animals, and oversized semiconductor production equipment, which ANA has not extensively before. By combining the strengths of ANA and NCA, we aim to capture new products and market demand.”

Although there are no immediate changes to flight schedules or route networks, the intent is clear. “To capture cargo demand from Asia to Europe and North America, as well as time-sensitive cargo and high-value cargo, we will continue to explore route realignment and the development of new products,” the team confirmed.

Even the fleet mix will eventually be optimised. “Future decisions regarding fleet strategy and route planning will be made in consultation with relevant parties,” they said. “By leveraging the ANA Group’s extensive passenger flight network and combining medium- to short-range B767F with long-range B747F and B777F, we will enhance profitability.”

Not just scale

One of the less visible, but strategically vital, goals of the integration is to build resilience into Japan’s cargo infrastructure. Volatility — whether from pandemics, trade disputes or fuel shocks — has underscored the need for carriers that can maintain stable services under pressure.

“By leveraging ANA Group’s resources and streamlining overlapping functions to reduce costs, we aim to build a combined entity with strong volatility resilience,” the team said. “This will enable us to provide stable transportation services to customers (forwarders and shippers) even during demand downturns.”

That stability matters particularly to industries such as pharmaceuticals, automotive and electronics, which rely on predictable, high-quality transport for critical components. The group is also mindful of sustainability.

“The ANA Group is working to eliminate overlapping functions between the two companies to promote operational efficiency,” they explained. “We are leveraging volume benefits in fuel and material procurement to achieve more efficient business operations.”
Narita itself is expected to expand capacity through new runway construction. Although no specific investment decisions have been announced, the team sees the potential. “With NCA joining the ANA Group, we aim to further enhance the ANA Group’s cargo business by realising an ideal network as a combination carrier, and by improving our transportation skills and expertise,” they said.
Financially, the impact will be watched closely. “Regarding the impact of incorporating NCA’s financial results on ANAHD’s performance from this fiscal year onward, we will carefully examine and compile the figures, and present them at an appropriate time,” the team noted. But the direction is clear: “The cargo business is a vital source of revenue for the ANA Group, and we are committed to pursuing profit growth.”