IIRC they said it was an “English” band in the subs. The Japanese might have said イギリス but I’m not 100% sure.
As far as we know the people who come back in AB! can reappear anywhere. They say they do not know the details, so it is possible that Iwasawa was just revived in an English speaking country. So Sala could be the reincarnation of Iwasawa or someone related to her somehow. To support my point, when we see Otanashi and Kanade at the end of angel beats, they have similar features as their previous life such as hair color and general shape. However, we do not see their faces and do not know exactly where they are. It is possible that one of them lives in japan and the other in Canada and they just passed by each other while one of them was visiting the other’s country. Also, now that they are in the real world they age normally, which would explain the age gap between Iwasawa and Sala. (Angel Beats! spoilers)
I can see your point but I think the fact that Yuu watched angel beats! on TV proves this wrong. If angel beats! is just an anime in the Charlotte world it wouldn’t be real. Or was it some kind of reality TV show… But that would be kinda stupid
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The fact that we saw an AB! scene on TV could just be an easter egg or it could be an hint that the two worlds are linked. It could also be to show that, like you said, AB! is just an anime in charlotte and thus Sala is not related to Iwasawa. We will see I guess, because for the moment we can only speculate. The only thing that is certain at the moment is that there was an AB! reference in charmlotte and that Sala is oddly similar to Iwasawa. Also, even if Sala is the reincarnation of Iwasawa, they might not develop the story around it. It could just be a fun fact or something like that.
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Probably it’s just an easter egg for us fans and has no meaning at all. But theorizing about it is funny though 
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While I’m not convinced Iwasawa and Sala are the same person or related in anyway I don’t think this statement is necessarily true. (Angel Beats! episode 13) the ending scene clearly shows not only does Kanade remember My Song when she was reincarnated but Otonoshi at least recognized it and it reminded him of Kanade. Someone else in the Battlefront might have remembered their time (maybe thought it was some crazy dream or something) and made an anime about it (or manga/game/ln that got adapted)
It seems most people have pretty contrived ideas of what ‘reincarnation’ actually means. Sure, it’s fiction, but Angel Beats! specifically referenced the Budhhist idea of rebitrth, and it was a huge theme in AIR, so if it is happening here, then you need to be aware of what that means.
Rebirth or Reincarnation mean that something of you, your soul or your karma, get transported into a new life upon death. That new person isn’t really you; it’s an entirely different person. Sure, AB! the scene at the end of Angel Beats! has similar-looking people, and recognising the music (some memory that got passed down I guess), but they’re not the same people. And it’s not like you just get plopped back into the world like you fell down from the clouds. Those people lived a completely different life with their own memories and a distinct personality.
But all of this ranting is pointless because she’s not fucking Iwasawa! She’s Sala. Stop trying to connect Angel Beats! to it already god damn. Rewrite has a higher chance of being connected, and even that is silly.
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Major issue with the subs for episode 8. I’m fairly certain her name is supposed to be “Sara” not “Sala.” First off Sala is of Hebrew or Swahili roots, and she is from an English-speaking country. Not to say that it’s not possible that she has other heritage (I live in New Jersey, but my town is 50% East Asian) but her red hair, and last name Shane point to distinctly Irish heritage, and I think Sara makes a lot more sense as the pronunciation of her name. Really think the Subs steered us wrong here. And I know the characters (herself included) pronounce it as Sala, but the l and r sound can be tough to distinguish in Japanese.
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Haha whoops, I stand corrected
I made the same mistake when her name was first announced xP
They announced it as サラ which I thought “Oh obviously it’s Sarah!”
Then they released the official information and I just hung my head in shame…
Ask Maeda.
