AirAsia Zest unfazed by Cebu Pac-Tigerair merger

MANILA, Philippines - AirAsia Zest, jointly owned by Philippines AirAsia and Zest Airways of former Amb. Alfredo Yao, is unfazed by the recent acquisition of Tiger Airways Philippines by budget airline Cebu Air Inc. (Cebu Pacific).

Maan Hontiveros, president of Philippines AirAsia, said the low cost carrier is not bothered by the decision of Cebu Pacific to acquire Tigerair Philippines for $15 million.

“No, I see no reason to oppose it. It will make Cebu Pacific bigger but that is okay,” Hontiveros told reporters on the sidelines of the awarding of the airline’s #LoveisintheAir social media contest.

She pointed out that the airline industry is in the period of consolidation.

“It just consolidates the number of airlines operating which means that aside from Cebu Pacific and Philippine Airlines we are seen as the alternative airline,” she said.

Cebu Pacific is spending $7 million to acquire the 40 percent share of Tiger Airways Singapore Pte Ltd and $8 million for the 60 percent owned by Filipino businessmen in Tigerair Philippines.

Cebu Pacific has a fleet of 49 Airbus aircraft including 29 A320, 10 A319, two A330, and eight ATR-72 500. It is in the middle of a $4 billion refleeting program involving the acquisition of 49 brandnew Airbus aircraft consisting of 15A320, 30 Airbus A321neo, and four A330.

On the other hand, the Tigerair Group consisting of Tigerair Singapore, Tigerair Mandala, Tigerair Philippines, and Tigerair Australia operates a fleet of 51 Airbus A320 of which five are being used by its Philippine unit.

Hontiveros said AirAsia Zest intends to beef up its fleet to about 14 to 16 aircraft from the current number of 12.

She added that two of the four Airbus A320 aircraft to be delivered this year are expected to arrive in the first half of the year.

“The fleet plans will change. It is very very fluid,” she said.

She said AirAsia Zest is looking at mounting flights to Nagoya and Osaka in Japan as well as some parts of China.

She added that the low cost carrier is also expanding its domestic routes via its hubs in Manila and Kalibo.

AirAsia Zest flies to Kalibo, Puerto Princesa, Cebu, Davao, Tacloban, Tagbilaran, and Cagayan de Oro as well as international points in Asia including China and South Korea.

The unit of AirAsia Berhad in the Philippines is also looking at partnering with AirAsia X for possible long haul flights.

“That (long haul operations) is always a possibility. If we do long haul we will partner with AirAsia X,” Hontiveros added.