ANA Holdings and Vietnam Airlines have signed a business and capital partnership agreement, under which ANA will acquire an 8.8% stake in Vietnam Airlines for 2,431 billion dong (US$109 million).

According to ANA, the partnership will cover cargo handling, ground handling and aircraft maintenance at various Japanese and Vietnamese airports, as well as passenger-focused features such as catering and codeshare arrangements on 30 domestic routes in Japan and Vietnam and 10 international routes between the two countries.

“It is our great honour to share with Vietnam Airlines our many years of experience including assistance for the provision of improved service quality and to contribute to the mutual growth and development of the companies,” said Shinya Katanozaka, president and CEO of ANA Holdings. “Through this business and capital partnership ANAHD will contribute to the further promotion of economic, cultural and personal ties between Japan and other Asian states while also promoting travel to Japan.”

The subscription of shares is scheduled to occur in July, according to ANA.

The two airlines signed a memorandum of understanding in January 2016.