AirAsia's subsidiary in the Philippines has decided to purchase 49 percent of Zest Airways as their initial step in expanding their business into the Philippines. Forty percent of Philippines AirAsia Inc is owned by AirAsia Malaysia while sixty percent is owned by Philippine businessmen including Antonio "Tonyboy" Cojuangco and Chief Executive Marianne Hontiveros.
The purchase of shares from Zest Airways was done through exchange of shares. Both companies decline to comment on the worth of their deal. Alfredo Yao, owner of Zest Air will be getting fifteen percent in the AirAsia Unit. Tony Fernandes, CEO of AirAsia Group, told reporters "This strategic partnership is all about growing the market."
In a short time, AirAsia was able to penetrate the airline market and has built a remarkable reputation. It was reported last month that it has ordered a large number of aircrafts to build a modern fleet. At present, AirAsia owns more than a hundred aircraft in operation. They plan to concentrate in their routes in Malaysia, Thailand and Indonesia then later expand its routes to Japan and the Philippines.
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