Wednesday, November 21, 2018
Close  
  • share this

AirAsia, Zest sign ‘dream alliance’

Share-swap deal to give Malaysian firm 49% of Yao’s airline

The local unit of Malaysia’s AirAsia and Alfred Yao’s Zest Airways have

joined forces in a “dream merger” that will take on bigger rivals that dominate the country’s air travel industry.

ADVERTISEMENT

AirAsia Philippines and Zest Airways formally announced Monday a strategic alliance that would involve the integration of operations of both airlines. The two brands, however, will continue to operate as separate entities.

“This gives us the critical mass to build something special,” Malaysian businessman and AirAsia group CEO Tony Fernandes said in a speech following the announcement.

FEATURED STORIES

Under the strategic alliance, the two groups agreed to a share swap with AirAsia Philippines getting a 49-percent stake in Zest Airways. In exchange, Yao will get a 15-percent interest in AirAsia Philippines.

Yao’s stake will come from AirAsia Philippines’ existing Filipino shareholders, namely, the company’s CEO Marianne Hontiveros, vice chair Michael Romero and chair Antonio “Tonyboy” Cojuangco. Each of the original shareholders will give up 5 percent of their current 20 percent to Yao.

Once the transaction has been completed, all four Filipino shareholders will own 15 percent of AirAsia Philippines, while the remaining 40 percent will stay with Malaysia’s AirAsia Berhad.

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: AirAsia, aviation, Business, merger, Zest Airways
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2018 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.