Posted by Neelam Mathews
March 11, 2013
Philippines' AirAsia, enters into a Strategic Alliance Agreement
with Ambassador Alfredo Yao, the majority shareholder of Zest Airways, Inc.
and Asiawide Airways, Inc. (collectively, the “Zest Air Group”). In the 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 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, says a press statement.
The investment of PAA in Zest Air also aligns with AirAsia
Group’s business strategy. The AirAsia Group consists of existing operations in
Malaysia, Thailand, Indonesia, Japan, the Philippines and, with India to come,
altogether making AirAsia the largest Asian low cost carrier, with a combined
fleet of 120 aircraft, plus over 350 more on order, and operating over 158
routes spread across 18 countries. AirAsia sees enormous growth potential in
the Philippines, especially with a population of over 100 million people across
an archipelago of just over 7,000 islands, a landscape conducive to air
transportation, the statement adds.
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