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BORACAY—Businessman
Alfredo M. Yao could be the owner of two airlines before
the end of the first half of this year.
After
completing the takeover of Asian Spirit Inc. late last
month, Yao, the chairman of Zest-O Corp. and Private
Business Bank, announced Friday he is already close to
formalizing an agreement for the purchase of Southeast
Asian Airlines, or Seair.
Nikos
Gitsis, Seair cofounder and director, confirmed to the
BusinessMirror that a deal could be announced before
end-June, adding that Yao’s group is already conducting
due diligence on the airline.
“We’re
just waiting for the formal offer,” Gitsis said during
the 10th anniversary celebration of
Boracay Regency Beach
resort and Convention Center in Boracay Friday night.
In an
earlier interview with reporters in Boracay, Yao said
there is already a “meeting of minds” with Seair on the
deal—including the price—although he didn’t provide any
further details.
Reminded
of the recent spate of bankruptcies that have hit
foreign budget airlines—including Oasis of Hong Kong
and, just last Friday, Frontier of the US, Yao smiled
and said, “There’s no way out now.”
In a
telling gesture, when Seair gave out prizes during the
Boracay Regency’s anniversary party,
Yao was called on-stage to join the other Seair executives. The
host introduced
Yao as a kapamilya or a member of their family.
Yao said his plan is to eventually merge the two airlines.
“There is a need to rationalize their operations,” he
said.
He also
revealed he would like to complete this consolidation
before the year is over, although there is still no
decision on which one will be the surviving entity or if
Asian Spirit and Seair will be rebranded with an
entirely new name.
But if
Gitsis has his way, Seair, naturally, would be the
survivor. “For what we’ve done,” he said, “Seair is a
better brand.”
According to a source, negotiations with Seair began
late last year—even before talks with Asian Spirit
started.
“There
are a lot of things at play here,” Gitsis said on the
lengthy discussions between the two parties. In an
almost wistful tone, he noted how he and cofounder Iren
Dornier founded the small airline in 1995 and nurtured
it through the years, stressing the “love and effort”
they put in to “make it happen.”
As to
whether he will be part of the management of the merged
entity, Gitsis admitted that while “it’s part of the
deal,” he may or may not join the “new” airline but will
be there during the transition period.
He also
revealed that he and Dornier are busy working on setting
up a manufacturing facility in Clarkfield, Pampanga, to
produce seaplanes.
“It’s
difficult to let go,” he eventually admitted, while
acknowledging that it was also “important for the
company to take the next step.”
“We’re
not working in a hurry to give away the airline,” he
added.
And,
after even further thought, Gitsis: “We’re saving the
best for last.” (VSB) |
