Philippines' AirAsia in strategic alliance with Zest Airways

 

MANILA, 11 MARCH 2013 – Philippines' AirAsia, Inc. (“PAA”) enters into a Strategic Alliance Agreement with Ambassador Alfredo Yao, who is the majority shareholder of Zest Airways, Inc. and Asiawide Airways, Inc. (collectively, the “Zest Air Group”).

 

In the Strategic Alliance Agreement between PAA and Ambassador Alfredo Yao, PAA intends to invest in the Zest Air Group by acquiring 49% of common stock of Zest Airways and 100% of Asiawide Airways, and, in turn, Amb. Yao will subscribe to shares in PAA. The Strategic Alliance Agreement contemplates various regulatory approvals to be obtained prior to completion of the transaction. To further strengthen this partnership, the shareholders of PAA will infuse funds to augment working capital.

 

Marianne Hontiveros, CEO of PAA, said, “Today's strategic alliance between our two local carriers brings pride and joy to Philippines' AirAsia. I am especially delighted to have Amb. Yao of ZestAir as a partner as he shares a common vision to provide passengers with the best value fare possible which enables them to fly to various destinations.”

 

“This proposed investment in the Zest Group will complement the strategies for future growth of PAA, which currently operates out of Clark. This will allow us to leverage on our respective strengths, which in the case of Zest Air, include its operations out of the Ninoy Aquino International Airport (“NAIA”), which constitutes a majority of the air traffic in the Philippines, and a strong domestic network which feeds into its current international routes. The stockholders of PAA welcome this partnership with Amb. Yao, a seasoned entrepreneur who is well regarded in Philippines,” she added.