Wednesday, March 13, 2013
AirAsia Philippines and Zest Air sign Strategic Alliance
Budget airlines AirAsia Philippines and Zest Air signed on March 11, 2013 a strategic alliance agreement aimed at strengthening AirAsia Philippines' operations in the country. AirAsia Philippines currently operates from its hub in Clark. Through this partnership, AirAsia Philippines will be able to leverage on Zest Air's operations at Ninoy Aquino International Airport (NAIA).
The strategic alliance is expected to bolster competition in Philippine airline industry, resulting to lowered fares and improved services. This will also support the growing domestic tourism in the country which registered 37.5 million domestic trips in 2012, exceeding the 35.5 million passengers target originally set for 2016.
Under the strategic alliance agreement, AirAsia Philippines is to acquire a 49% stake in Zest Air from business tycoon Alfredo Yao. Yao will then receive a 15% stake in AirAsia Philippines, joining Antonio O. Cojuangco (15%), Michael L. Romero (15%) and Marianne Hontiveros (15%) as shareholders in the company. Malaysia's AirAsia Bhd, majority-owned by Tan Sri Tony Fernandes, holds the remaining 40% in AirAsia Philippines.
Source: Philippines' AirAsia in Strategic Alliance with Zest Airways (Bursa Malaysia)
Image Source: AirAsia Philippines Facebook Page (shared with permission from AirAsia Philippines)