AirAsia signs deal to buy 49pc of Philippine budget carrier

Posted date: March 12, 2013 In: Business

MANILA (dpa) – South-East Asia’s largest budget airline group on Monday entered into a deal to acquire 49 per cent of a Philippine low-cost carrier.

The Philippines unit of Malaysia-based AirAsia Berhad and local carrier Zest Airways signed the share-swap agreement in Manila, but have not disclosed the amount involved pending regulatory approval.

Philippines’ AirAsia Inc also acquires 100 per cent of Asiawide Airways, the holding company of Zest Airways, under the strategic alliance agreement, the company said.

Zest Airways will get a 15-per-cent stake in Philippines’ AirAsia.

“This investment in the Zest Group will complement the strategies for future growth of Philippines’ AirAsia,” said Marian Hontiveros, chief executive officer of Philippines’ AirAsia.

“This will allow us to leverage our respective strengths.”

The AirAsia group serves more than 150 routes across 18 countries with a combined fleet of 120 aircraft.

It began operations in the Philippines in 2012 from Clark airport, 70 kilometres north of Manila, serving four international and two domestic destinations.