All Nippon Airways parent ANA Holdings has agreed to acquire a 9.5% stake in PAL Holdings, owner of Philippine Airlines.
It comes on the back of a deal agreed by ANA to buy 38 Boeing and Airbus planes worth $4.33 billion.
The two airlines already collaborate with a codeshare partnership that connects 16 cities in Japan and 11 Philippines destinations.
"Asia is a key growth market and we believe Philippine Airlines is in an excellent operational position to capitalise on both the strong uptick in air traffic growth as well as the vibrant, expanding Philippine economy," says ANA president and chief executive Shinya Katanozaka.
PAL had long been seeking a strategic partner to invest in order to speed up its expansion plans across Asia and beyond.
"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,"said PAL president Jaime Bautista.
ANA recently confirmed it had held talks with PAL.
The Japanese carrier also has a similar sized stake in Vietnam Airlines and tried unsuccessfully twice to make strategic investments in Myanmar airlines.
