AirAsia Inc. is moving closer to the takeover of Zest Airways, allowing for the local unit of Southeast Asia’s largest budget airlines to consolidate its operations in the Philippines and to go head to head with other leading Philippine carriers.
In an interview with the reporters, AirAsia Zest Chairman Alfredo M. Yao said the local unit of Malaysian carrier AirAsia Berhad can now solidify its presence in the Philippines now that it has gained approval from the Securities and Exchange Commission and from Congress.
The group is now seeking approval from the Civil Aeronautics Board and Civil Aviation Authority of the Philippines.
AirAsia Inc. (AirAsia Philippines), the local unit of the Southeast Asian budget carrier giant, has been seeking to acquire the 51-percent shareholding in Zest Airways Inc., which is owned by the former ambassador, and fully own the homegrown carrier. Yao, however, said the transaction is not yet complete. But if this push through, this would strengthen the AirAsia brand in the Philippines, according to him.
In 2013 AirAsia Philippines and Zest Airways formed a strategic partnership that allowed AirAsia Inc. to acquire a 49-percent stake in Zest Air—giving way to a rebranding to become AirAsia Zest—and 100 percent in Asiawide Airways, both under the Zest Air Group. Zest Air is the low-cost carrier operating from the Ninoy Aquino International Airport.
After the transaction, Yao will have a 15-percent interest in AirAsia Philippines, while other Filipino shareholders, Marianne Hontiveros, Michael Romero and Antonio Cojuangco—all part owners of AirAsia Philippines—will get 15 percent each. Malaysia’s AirAsia Group will maintain ownership of 40 percent in AirAsia Philippines. The merged entity will be rebranded as AirAsia.
According to earlier reports, AirAsia Zest operates a fleet of 13 A320-200s on flights throughout the Philippines, as well as to South Korea, Malaysia, Macau and China.
Once its takeover of AirAsia Zest is complete, AirAsia Philippines intends to consolidate its domestic operations with bases in Davao and Cebu.
New flights
AIRASIA Bhd. is increasing its flights from Kuala Lumpur to Manila to three daily flights amid plans to increase its frequencies to Banda Aceh in Indonesia.
The Malaysian carrier will start the increased flight frequencies to Manila on July 12. The 10-times weekly flights to Banda Aceh from Kuala Lumpur will commence on July 16. Both flights will be operated by AirAsia Berhad with the flight code AK.
AirAsia also connects Malaysia to the Philippines with daily flights from Kuala Lumpur to Clark and Kalibo-gateway to Boracay, as well as to Cebu with thrice-weekly flights. While guests from Kota Kinabalu, Sabah can connect to Manila with daily flights, and Cebu with four weekly flights via flights operated by AirAsia Zest in the Philippines.
Apart from that, guests can take advantage of AirAsia’s network domestically in the Philippines and connect onward to nearby cities of Puerto Princesa, Tagbilaran, Kalibo, Tacloban and Cebu via flights operated by AirAsia Philippines and AirAsia Zest.
AirAsia operates more than 250 weekly flights connecting Malaysia and Indonesia covering 16 cities throughout the archipelago.
Direct flights available from various hub in Malaysia from Kuala Lumpur, Johor Bahru, Penang and Kota Kinabalu to Balikpapan, Bandung, Bali, Lombok Jakarta, Medan, Banda Aceh, Yogyakarta, Padang, Palembang, Pekanbaru, Pontianak, Semarang, Solo, Surabaya and Makassar.
Banda Aceh is known as the “land of friendly smiles,” untouched natural beauty and rich heritage located at the westernmost point of the Indonesian archipelago. It provides visitors with a wide range of experiences from idyllic beaches, outdoor and nature activities, to culture and heritage tours. With additional report by Lorenz S. Marasigan