0 Marriage Out of Wedlock

The Civil Aeronautics Board's (CAB) manifested its displeasure in the union of Zest Airways and Air Asia Philippine which could face penalty for undertaking joint marketing agreement without asking regulator's approval.

CAB said both airlines failed to explain why Zest Air is using Air Asia's website for reservation and ticket sales without clearance from them. Both airlines also failed to register the merger with the Board.

Merger and consolidation, as well as Joint Marketing Agreement between two airlines requires prior license and approval from CAB to protect the interest of the riding public as to civil and criminal liability in case of breaches of contract that may be incurred by the merging airlines.