Japan's All Nippon Airways (ANA) group will invest $95m to acquire 9.5% of PAL Holdings, the parent of Philippine Airlines (PAL), the Philippine flag carrier.
ANA Holdings will acquire the shares from Trustmark Holdings Corp, which is owned by the Lucio Tan family and is the largest shareholder of PAL Holdings.
Completion of the investment is subject to certain closing conditions.
ANA Holdings said: "In line with the Mid-Term Corporate Strategy for FY2018-2022, the ANA group is expanding its international group network, which is considered its main growth pillar, and strengthening its partnerships with foreign airlines to provide further convenience to its passengers.
"This purchase underscores ANA HD’s belief in the dynamism of the Asian region and the great potential of the Philippines’ multi-awarded flag carrier and its confidence that the Philippine air travel market will continue to serve as an economic leader for the ASEAN region."
ANA said that its investment "heralds the dawn of a new era of growth for PAL," which has embarked on a full-scale expansion programme that has seen its fleet and network grow to almost 100 aircraft and 80 destinations in four continents.
Shinya Katanozaka, president and chief executive of ANA Holdings, said: “Asia is a key growth market and we believe Philippine Airlines is in an excellent operational position to capitalize on both the strong uptick in air traffic growth as well as the vibrant, expanding Philippine economy.
"We look forward to expanding our business relationship with Philippine Airlines so we can continue to serve our passengers even better.”
Jaime J. Bautista, president of PAL Holdings and Philippine Airlines, said: “The Philippines and Japan have a long-standing relationship with complementary strengths.
This week, in fact, we commemorate the 70th year of Philippine Airlines’ service to Japan, dating back to the launch of our first Manila-Tokyo flight on January 26, 1949.
"It is a great privilege to celebrate this historic occasion by strengthening our ties with ANA, as we aim to build a relationship that is mutually beneficial with an eye to a more progressive future.”
ANA operates 14 flights weekly on two routes to the Philippines and Philippine Airlines currently operates 84 flights weekly on nine routes to Japan. The two carriers have code share operations on Japan - Philippine routes and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations.
Separately, ANA Holdings has placed a $4.3bn order for a total of 48 aircraft, which include 30 Boeing 737 MAX 8 and 18 Airbus A320neo. Deliveries are scheduled from FY2021 to FY2025.
ANA said that the decision was based on "the economic growth of Asia and emerging countries, with demand in the Asian aviation market and inbound demand on the rise".