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It looks
like business magnate Alfredo M. Yao may be softening
his stand on buying low-cost carrier South East Asian
Airlines Inc. (Seair)
Yao admitted that while he is eyeing Seair after
completing the takeover of Asian Spirit Inc.,
negotiations with the latter may take a more difficult
route. “We are interested in Seair but I can say we can
survive without Seair,”
Yao said as he noted that arrangements with the purchase
of Asian Spirit is almost a “done deal.”
In
March, it was reported that
Yao has completed the takeover of flag carrier with the
signing of a share-purchase agreement with the Airline
Employees Cooperative and individual shareholders led by
prominent businessman and CATS Motors founder Antonio
Ang, Antonio Turalba Jr. of the Active Group Inc. and
investment banker Noel Oñate.
Yao, the chairman of Zest-O Corp., said he expects the
acquisition of Asian Spirit Inc. (ASI), to be completed
soon as they are only waiting for the signature of one
of the airline’s original owners to complete the deal.
It’s a
different story with Seair, however, as the owners
headed by cofounders Iren Dornier, Nikos Gitsis, and the
Filipino group led by marketing guru Tomas B. Lopez Jr.,
declined the offer by Yao to purchase their shares for
$2 million (or P84.63 million). This was $1.75 million
(P74 million) lower than the “original consensus price”
of $3.75 million (P159 million), before Yao’s group
conducted due diligence on the airline. Last week, it
was reported that Yao still intends to pursue the
purchase of the carrier.
The
business magnate is hoping to solidify his stake in the
tourism business with the planned acquisition of the
airlines and the establishment of a hotel chain.
“There
is something about tourism that I am interested in. I
believe tourism and agriculture will be the backbone of
our economy in the future,” Yao told reporters just
before meeting students and young businessmen in Cebu
for the Meet the Business Legends forum of the Cebu
Chamber of Commerce and Industry last week.
Aside
from his purchase into the airline industry, Yao’s
holding company, AMY Holdings Inc., is looking at
expanding its stake in the hotel industry by opening up
another Legenda Hotel, either in
Bohol or
Cebu. The first hotel is located in
Subic,
Zambales.
Yao said he is planning to rebrand the new airline and
bring in new and bigger planes.
He plans
to purchase Airbus A320s for the regional flights and to
build a hub in Cebu.
“The
strength of Asian Spirit is that it has been the pioneer
in the business and it still controls the flights to the
major tourism destinations in the country like Boracay
and Busuanga,”
Yao
said.
“We will
continue with our niche marketing as a budget carrier,”
he plans to expand the airline’s reach, and is currently
looking at flights to Camotes and Bantayan islands in
Cebu province, two of the most popular island
destinations in the country.
“I am a
situational manager. Let’s see what happens and we’ll
decide there,” Yao said. |
