Investing Stocks in Philippines: AirAsia

Showing posts with label AirAsia. Show all posts

Friday, March 15, 2013

Stock News 2013: AirAsia acquires 49 percent of Zest Air

English: Zest Air logo (Photo credit: Wikipedia)

Philippines’ AirAsia (PAA) Incorporated on Monday said that it has acquired 49 percent of local budget carrier Zest Airways, Incorporated in a strategic alliance envisioned to strengthen their operations in both Clark International Airport and Ninoy Aquino International Airport.

In a statement, Philippines’ AirAsia CEO Marianne Hontiveros said that the “strategic alliance” between the two budget carriers would “complement the strategies for future growth of PAA (Philippines’ AirAsia), which currently operates out of Clark.”

PAA entered into a strategic alliance agreement with Ambassador Alfredo Yao, the majority shareholder of Zest Airways Inc. And Asiawide Airways Incorporated.

Hontiveros said that the investment in the Zest Group will allow Philippines’ AirAsia to “leverage on our respective strengths, which in the case of Zest Air, include its operations out of the Ninoy Aquino International Airport.”

Zest Air will get a 15 percent stake in Philippines’ Air Asia.

Zest Air operates 11 aircraft on 10 domestic and 10 international routes. It has hubs in Manila, Kalibo and Cebu in the central Philippines, which are major tourist destinations.

Malaysia-based AirAsia started operations in the Philippines in 2012 from Clark airport, a 2-3 hour drive from the capital, while Zest Air operates from Ninoy Aquino International Airport in Manila. AirAsia’s routes from Clark include Kuala Lumpur, Hong Kong, Singapore, Taipei and Kalibo and Davao in the Philippines.

http://business.inquirer.net/111699/airasia-expands-in-philippines-buys-into-zest-air

Tuesday, October 26, 2010

Stock News 2010: Cebu Air Jumps 6.8% on Listing Debut, Raises Total of $611 Million from IPO

Image via Wikipedia

MANILA, Philippines – Budget airline Cebu Air Inc. jumped as much as 6.8 percent on its debut Tuesday, as the country's largest public offering rode on the back of a broader market that hit a fresh record high.

The airline, a unit of conglomerate JG Summit Holdings Corp and the second biggest Asian budget carrier by market value, raised $611 million in its IPO including a greenshoe option, making it a record amount in dollar terms for a Philippine listing.

Cebu Air's debut takes place amid a boom in IPOs in Asia as well as strong foreign demand for high-yielding emerging markets such as the Philippines.

Upbeat sentiment following presidential elections in May have helped lift the index about 40 percent this year and it is the second best performer in Southeast Asia after Indonesia.

This backdrop bodes well for upcoming listings in the Philippines, analysts said. Philippine miner Nickel Asia plans to raise $162 million in an IPO next month.

''Having launched successfully, the ones apprehensive on the sidelines are now emboldened to come in,'' said Alejandro Yu, president of R.S. Lim and Company, a local stock brokerage.

Cebu Air's shares opened at 132 pesos after a ceremony that included flight attendants dancing the flight safety routine to a Lady Gaga pop song on the stock exchange trading floor, peppered with tube balloons carrying the airline's yellow orange colours. The safety routine dance was a big hit on YouTube earlier this month.

The stock rose as high as 133.5 pesos, before closing at 133 pesos. The airline had sold about 215 million shares at its IPO at 125 pesos each, Cebu Air's parent said late on Monday.

At Tuesday's close, Cebu Pacific was valued at nearly 97 billion pesos or $2.2 billion, larger than rival Tiger Airways at about $723 million but smaller than Malaysia's AirAsia, valued at about $2.3 billion.

Cebu Air CEO and President Lance Gokongwei said he expects the company's international business to overtake its domestic operations in four to five years as it seeks to increase its international capacity by 25 percent yearly via new foreign routes and flight frequencies.

http://www.mb.com.ph/node/284378/cebu-air-jump