Quantcast
Latest Stories

AirAsia PH suspends some flights

Resources diverted to Zest Airways; firm ‘rationalizes’ routes

By

Philippines AirAsia is temporarily suspending several local and international flights as it diverts resources to unit Zest Airways, after a surprise multi-day suspension of Zest in August resulted in the latter taking a “significant” hit, both in terms of finances and reputation, a top official said.

Philippines AirAsia CEO Marianne Hontiveros said in an interview Thursday that the airline, which operates out of Clark International Airport, would suspend its Kalibo and Davao flights effective Oct. 9 and Hong Kong and Taipei by early November. She said the international routes would be resumed in time for the Christmas season.

The plans are part of broader efforts by the company, the domestic unit of Malaysia’s AirAsia Bhd, to “rationalize” its routes, meaning cutting back or halting flights with “low” passenger loads, Hontiveros said.

The decision was made during a board meeting last Tuesday, she said.

But these efforts have been complicated by the financial impact on Zest following the airline’s suspension by the Civil Aviation Authority of the Philippines on the evening of Aug. 16 until Aug 19.

The suspension caused at least P300 million in expenses and foregone revenues during the four-day period, in addition to penalties slapped by authorities in China, a source with knowledge of the matter said previously.

The airline’s reputation also took a hit, as thousands of passengers were stranded and had to be refunded or rebooked. Passenger volume has dipped since the incident, Hontiveros said.

“We’re investors in Zest and we need to concentrate resources here until things stabilize,” Hontiveros said, citing the need to stay “cash positive.” AirAsia Inc. (Philippines), which is a unit of AirAsia Berhad, has a 49 percent stake in Zest.

“The financial losses directly out of the [CAAP] grounding were very substantial,” Hontiveros said.

Zest chair and CEO Alfredo Yao, in a separate interview, said the company continued to receive support from the AirAsia Group but he denied that Zest was in trouble.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Air Transport , Business , Philippines , Philippines AirAsia , suspension of flights , Zest Air

  • vir_a

    Some of our government regulators are irresponsible. They did not realize they were killing a struggling airline who has no record of accident but with just minor violations of rules. Whereas, we have a shipping line who has killed / murdered thousands of passengers, and the owner is still in business by another name but same vessels.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Napoles tags over 100 officials in pork scam – Lacson
  • Vitangcol to sue Czech envoy
  • Senator’s kickback from pork bigger than those of Enrile, Estrada, Revilla – Lacson
  • 43 out of 414 Etihad passengers yet to be found, tested for MERS-CoV – Palace
  • Sandigan junks Marcos family claim to Paoay property
  • Sports

  • Caguioa blasts ‘no heart, soft’ Ginebra on Twitter
  • San Mig Coffee grinds out win over Alaska to force decider
  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Bollywood Oscars, film stars come to Florida
  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Business

  • SM to rebuild Tacloban hospital
  • PSEi slips after 4-day rally
  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • 19 Ukrainians, Russians, Filipinas rescued in bar raid
  • Filipinos coming home from Mideast must obtain MERS clearance – DOH
  • US Secret Service in Manila ahead of Obama visit
  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • Marketplace