AIR ASIA TOOK OVER TWO COMPANY

ZestAir plane

Air Asia Bhd further strengthen its position as a leading provider of low-cost carrier in Asia when acquiring controlling interest in two airlines under Zest Airways and Asiawide Airways from the Philippines.

Air Asia through its subsidiaries in the Philippines, Air Asia Philippines signed a Strategic Alliance Agreement with major shareholder Zest Air Group, Alfredo Yao. Under the agreement, Air Asia Philippines will buy 49 per cent stake Zest Airways, and 100 percent of the shares Asiawide Airways from Yao.

Air Asia Philippines will also inject additional funds into the two Philippine airlines as working capital. In exchange, Yao will be subscribed for shares in Air Asia Philippines.

In a joint statement yesterday, the Chairman of Air Asia Philippines, Antonio Cojuangco said the Malaysia-Philippines alliance that will bring the two groups in respect of low-cost carrier to a higher level. Air Asia Philippines chief executive, Marriane Hontiveros said the alliance will also offer passengers the best fares, allowing them to fly to various destinations.

Meanwhile, Yao see the strategic alliance between Air Asia and Zest Airways will provide a great opportunity for the two groups of low-cost travel options to expand in the Philippines and in the region.

written by:

Ibrahim Ahmad