Zest Air for sale

[timrev]

Buy Offers Swamp Zest Air

By BERNIE CAHILES-MAGKILAT
October 3, 2012, 4:50pm
MANILA, Philippines — Debt-laden low-cost carrier Zest Air has been swamped with interests from local and foreign airlines including legacy flag carrier Philippine Airlines, leading budget airline Cebu Pacific and China’s Hainan Air as the Zesto Group is willing to sell the airline “lock, stock and barrel.”

A source privy to the plan said the Zesto Group, which owns Zest Air, has received calls from these parties expressing interest in the airline and that the sale of Zest Air could be concluded before end of this year.

The source said that the Yao Group, which owns Zesto, has incurred huge debts since it acquired the airline. The source refused to give the exact debt, but said, it could run into billions of pesos.

Ramon S. Ang of PAL, the source said that could be doing their own due diligence while Cebu Pacific’s Lance Gokongwei already called a Zest Air official expressing interest about the company’s plan.

The source could only surmise that if Ang will get Zest Air, the San Miguel Corporation’s growth architect may combine Air Philippines, its low cost carrier, may be folded into PAL to augment its fleet as a full-serviced airline. Ang may maintain Zest Air as its low cost airline.

The source said, that while the Yao Group, which owns Zest Air, is willing to totally unload its interest, it will really depend on the buyer.

He said that based on Ang’s management, he would like to retain the old owners in the board for continuity sake and to ensure accountability.

“There are lots of things going inside a newly acquired asset so some new owners would like to keep the old owners in the new management,” the source. This is also a way to be able to make the old owners responsible.

The source, however, said that in the case of tycoon Lucio Tan, it has been evident that the tycoon has already relinquished most of his roles in PAL to Ang’s shrewd management. Ang has been credited to the successful diversification of SMC, which is no longer a food and beverage conglomerate, but is now a major player in energy, telecommunications, airline, and infrastructure sectors.

Ang has not stopped his buying expedition that he has not said no to anything being offered to him. His newest acquisition in PAL has fueled his interest for a possible new airport in Bulacan. A possible airport runway at the Amari property along Coastal in Paranaque was also raised.

In the case of Cebu Pacific, the source said that the Gokongwei group is bent on cementing its hold in the low cost market with the acquisition of Zest Air, which has firm grip on some missionary routes that Cebu Air has not flown yet.

The memorandum of understanding between the Zesto Group and Hainan Airlines for the latter to acquire majority stake in Zest Air has not really taken off the ground, although the Chinese Airline has remained interested in acquiring Zest Air. This leaves more room for the Zesto Group to open its doors to other parties.

“All these parties are serious buyers,” the source said.

Zest Air chairman Donald Dee had confirmed strong interests from other airlines and the only main consideration is price.

“It should be an offer we cannot refuse,” Dee said.

Among the factors that make Zest Air attractive is it has landing rights in Manila where the government has stopped granting new landing rights.

Zest Air has also the youngest fleet of A320s. It will have a total of 14 leased planes by end this year. It has an average load factor of 70 percent on the routes it flies into.

It flies to China, Korea and soon in Kuala Lumpur. There are proposals for them to fly to Japan and other southeast Asian destinations. The company is also looking at medium to long haul flights including the Middle East markets.

Domestically, the budget carrier flies to Boracay via Kalibo, Bacolod, Busuanga, Calbayog, Catarman, Cebu, Davao, Iloilo, Legazpi, Marinduque, Masbate, Puerto Princesa, San Fernando, San Jose, Tablas, Tacloban, Tagbilaran and Virac.

Zest Air started operations in 1996 when it acquired the formerly Asian Spirit, which owned by a cooperative. It was renamed to Zest Air in September 2008 to carry the flagship corporate name Zesto.

The Zesto Group has huge interests in ready-to-drink beverages, banking, food, chemicals, among others.

http://www.mb.com.ph/articles/375789...swamp-zest-air

[Monseratto]

Zesto ate more than they can chew...mahirap pumasok sa airline business.

AirAsia in talks to buy Zest Airways
Alliances in crowded budget carrier sector
By Paolo G. Montecillo
12:06 am | Thursday, September 20th, 2012

Malaysia’s AirAsia group is making a move to acquire local budget airline Zest Airways in a bid to expand its foothold in the fast-growing Philippine market.

Malaysia’s AirAsia group is making a move to acquire local budget airline Zest Airways in a bid to expand the regional giant’s foothold in the fast-growing Philippine market.

Highly placed Inquirer sources said that while nothing has been signed as of yet, negotiations were ongoing between AirAsia and the group of former ambassador and juice-drink magnate Alfred Yao.

In an interview on Wednesday, Yao confirmed that the company was in talks with several groups on the possible entry of new investors to help the airline compete in the country’s crowded budget carrier sector.

“We have been approached, but nothing is final yet. There are offers,” he told the Inquirer. Yao declined to confirm talks with the AirAsia group, owned by former music industry executive and Malaysian billionaire Tony Fernandes.

He said Zest Airways would make an appropriate announcement once a deal has been signed.

AirAsia already has a presence in the Philippines through local unit AirAsia Inc., a consortium between Fernandes, who owns 40 percent, and Antonio “Tonyboy” Cojuangco Jr., Michael Romero and Marianne Hontiveros, who own 20 percent each.

Constitutional restrictions bar foreigners from owning more than 40 percent of transportation companies. The same limitation applies to other utility firms, which are businesses considered as “imbued” with public interest.

AirAsia in the Philippines operates flights between the Clark Freeport in Pampanga and domestic routes like Davao, Puerto Princesa and Kalibo. The company also has international flights to Hong Kong, Macau and Kuala Lumpur.

AirAsia Malaysia, meanwhile, operates flights between Kuala Lumpur and the Clark International Airport in Pampanga. AirAsia Malaysia also has flights between the former military base and Kota Kinabalu.

Asked if flag carrier Philippine Airlines (PAL) was approached for a possible investment in Zest Airways, president Ramon S. Ang said, “Late tayo” (we were late).

Local AirAsia officials could not be reached for comment.

Data from the Civil Aeronautics Board (CAB) released last week showed the growth in the country’s international airline sector slowing to 7.34 percent in the first half, slower than the 11 percent booked last year.

Domestic demand, however, remained robust, with passenger traffic within the country growing 13.33 percent in the same six-month period

[chua_riwap]

Mas malaki kita sa Zest-O kesa eroplano......

[vinj]

Mas malaki kita sa Zest-O kesa eroplano......

And for sure Zest-O isn't as strong as it was before with the influx of many drink brands.

[timrev]

bagay sa new airport ni Ang if makuha din ng SMC or PAL ang zest air...sana low cost airline parin ang zest pagnabili abot kaya ng masa...
wag lang maibenta sa Chinese Airline

[Ry_Tower]

And for sure Zest-O isn't as strong as it was before with the influx of many drink brands.

Yup, tinalo na sila ng Refresh ng URC and a company owned by a certain Congressman vegetable.

[pop3corn]

Wala na kse bumibili ng zesto ngaun eh coz naging health conscious na Tao as well as andyan na yun 1 liter ng pakete ng orange , mango , pineapple from 3oclock, magnolia etc

Ako nga kahit iced tea di na bumili sa labas, I just bring with me the litro pakete of nestea, tapos bili ng bottled water, tapos say 1/6 rationing per 500ML bottle - parang joss.

Sent from my iPhone using Forum Runner

[marg]

And for sure Zest-O isn't as strong as it was before with the influx of many drink brands.

Nayari ng C2

[AKI125]

Diba na damay rin yun zest-o sa recently closed bank were in kasama sila sa board pala ng import export bank?

[boybi]

Sa kanila din ang Philippine Business Bank. Di kaya maging delikado ang bank na ito?