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

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Stock News 2012: Cebu Pacific, Zest Air seek Papua New Guinea route

English: Zest Air logo (Photo credit: Wikipedia)
Budget airlines Cebu Air Inc. of taipan John Gokongwei and Zest Airways Inc. of Amb. Alfredo Yao are seeking the go-signal from the Civil Aeronautics Board (CAB) to fly to Papua New Guinea.

The CAB is set to hear the consolidated application of Cebu Air, which operates under the Cebu Pacific brand, and Zest Air for designation as official Philippine carrier and allocation of entitlements to Papua New Guinea on July 24.

The low cost carriers are seeking 540 seat entitlements each.

The CAB is mandated by Republic Act 776, as amended by Presidential Decree 1462, to regulate, promote, and develop the economic aspect of air transportation in the Philippines and ensure that existing policies are adapted to the present and future air commerce of the Philippines.

The law also vests supervision, jurisdiction, and control over all carriers engaged in air commerce in the Philippines as well as their property, equipment, franchise and facilities.

“Pursuant to the provisions under RA 776, as amended, notice is hereby given that Cebu Pacific and Zest Air have filed with the CAB their respective petitions for designation as official Philippine carrier and allocation of entitlements to Papua New Guinea under Route 1 in accordance to the existing Confidential Memorandum of Understanding,” CAB hearing officer Maria Cecilia Cawilan stated in a notice of hearing.

The Philippines and Papua New Guinea agreed to increase flight entitlements between the two countries in August last year. The amended air services agreement increased entitlements to 600 seats per week from the previous 150 seat per week.

Likewise, a new route was also agreed for all airports outside Manila at 1,500 seats per week to help meet the growing tourism between the Philippines and Papua New Guinea.

Cebu Pacific currently operates 10 Airbus A319, 20 Airbus A320 and eight ATR-72 500 aircraft. Its fleet of 38 aircraft – with an average age of 3.6 years – is one of the youngest aircraft fleets in Asia.

On the other hand, ZestAir was established in September 2008 after the former Asian Spirit was taken over by the Yao Group through AMY Holdings Corp.

http://www.philstar.com/Article.aspx?articleId=827893&publicationSubCategoryId=66

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