PHILIPPINES’ AirAsia (PAA) announced yesterday its intentions to acquire 49 per cent of Zest Airways and 100 per cent of Asiawide Airways, which would allow the Clark-based low-cost carrier to benefit from Zest’s operations out of the Ninoy Aquino International Airport (NAIA) and its strong domestic network.
As part of the strategic alliance agreement, Alfredo Yao, the majority shareholder of Zest Airways and Asiawide Airways, will become the fourth Filipino investor in PAA, alongside Antonio Cojuangco Jr, Michael Romero and CEO Marianne Hontiveros.
“All Filipino shareholders will end up with 15 per cent each,” said Hontiveros at the signing. Funds will also be pumped in to “augment working capital”.
Zest has a domestic network of underserved but emerging tourist destinations such as Busuanga and Marinduque, as well as important connections from Incheon, Busan, Taipei, Jinjiang and Shanghai into its hubs in Kalibo, Manila and Cebu.
However, Hontiveros pointed out that would be no codesharing. “Zest will have their flights and will carry their own code, (while) PAA will continue its own flights. Each airline will operate separately, but we will synergise and cross-sell.”
AirAsia Group CEO Tony Fernandes, said: “Zest Air has a bigger fleet (in the Philippines), while the AirAsia Group has a larger network, so we will combine the best of both.”
Speaking to TTG Asia e-Daily, Elizabeth Pablico, general manager of Wintrex Travel Corporation and owner-operator of two AirAsia Travel & Service Centres in Manila, said: “I’m glad as I will have more products to sell now that (AirAsia) will have domestic and international flights from Manila care of Zest Air.”
As for Zest, she said it would “benefit from a partnership with the largest low-cost carrier in Asia, which has a superior IT infrastructure”.
Maria Michelle Reyes-Victoria, president and general manager at Golden Eagle Travel & Tours, added that Zest was not as aggressive in promoting its flights, sharing that she prefers using Korean Air, Asiana Airlines and Philippine Airlines for her South Korea-bound clients.
