Philippines' AirAsia in Alliance with Zest Airways

Philippines' AirAsia has entered into a strategic alliance agreement with Ambassador Alfredo Yao, who is the majority shareholder of Zest Airways, Inc. and Asiawide Airways, Inc. (collectively, the Zest Air Group).

Through the agreement, PAA intends to invest in the Zest Air Group by acquiring 49% of common stock of Zest Airways and 100% of Asiawide Airways, and, in turn, Amb. Yao will subscribe to shares in PAA. To further strengthen the partnership, the shareholders of PAA will infuse funds to augment working capital.

The deal requires various regulatory approvals to be obtained prior to completion.

Marianne Hontiveros, CEO of PAA, said, “This proposed investment in the Zest Group will complement the strategies for future growth of PAA, which currently operates out of Clark. This will allow us to leverage on our respective strengths, which in the case of Zest Air, include its operations out of the Ninoy Aquino International Airport, which constitutes a majority of the air traffic in the Philippines, and a strong domestic network which feeds into its current international routes. The stockholders of PAA welcome this partnership with Amb. Yao, a seasoned entrepreneur who is well regarded in Philippines.”

The AirAsia Group consists of existing operations in Malaysia, Thailand, Indonesia, Japan, the Philippines and India to come. The group has a combined fleet of 120 aircraft, plus over 350 more on order, and operates over 158 routes spread across 18 countries.