Japan's ANA Holdings has cancelled its plans to acquire a 49% stake in Myanmar’s Asian Wings Airways.
In August 2013, ANA announced intentions to pay $25m for a stake in the Burmese carrier.
ANA stated that said rising competition in Myanmar was one reason for cancelling the deal.
The airline said: "Competition between new and old airlines in Myanmar has intensified, bringing rapid changes in the external environment, and calling into question the assumptions made at the time of the original decision."
The airline also said it had been unable to reach an agreement on capital participation with AWA. The deal was part of ANA's plans to expand its business internationally At the time, it would have been the first investment in a Myanmar-based commercial airline by a foreign airline.