0 AirAsia Zest Realligns Domestic Operations

Airline To Focus More on International Flights

10 March 2014

AirAsia Zest has announced today that it is realigning its domestic operations because of over capacity in the Philippine market right after Cebu Pacific announces additional flights and capacity to its network where AirAsia Zest also flies.

In a disclosure to Malaysia stock Exchange, Parent Company AirAsia Berhad said its Philippine unit has revised its route plans for the year, intending to reduce the number of aircraft in its fleet by retiring two equipments making their operational fleet from 14 to 12. It was not disclosed what equipment will be returned. 

AirAsia Zest operates a fleet of A320 and A319 aircraft. 

But Company sourced disclosed that one A320 and one A319 is expected to be returned to the lessor soon when there respective leases expires.

The remaining 14 fleet of A320's are expected to increase their operational efficiency by cutting domestic destinations in exchange for "building more international routes out of Manila and Kalibo.”

AirAsia Zest intends to make Kalibo its hub for services to Southern China and Korea which are lucrative international markets.

The airline is already the largest operator out of Kalibo International Airport.

The airline is supposed to received two more A320's at the end of the year for international and domestic expansion growing their fleet to 16 but reports of dwindling passenger numbers in the domestic front sent alarm bells to Malaysia.

AirAsia Zest's domestic passengers fell by 3.5 percent to 1.99 million in 2013 from 2.06 million they carry in 2012.

Already, the airline suspended its Bacolod and Iloilo flights last year and will reduce its daily Davao flight to six flights a week.

It is gaining more passengers however in international flights which according to the airline is more profitable to operate.

AirAsia Zest regestered a 94 percent increase in international passengers carried to 617,188 last year from 324,237 passengers in 2012.

AirAsia Zest recently launched new flights from Manila to Miri and Macau, from Cebu to Kuala Lumpur, and from Kalibo to Shanghai.

To grow its international route further, the airline has a pending application with the Civil Aeronautics Board to increase its Macau flight frequency to daily flights from the existing three times a week out of Manila airport.

Detail: AirAsia Zest Realligns Domestic Operations

0 Zest Air Asia Adds 2 A320 For Japan Services

14 February 2013

AirAsia Zest head said that they will receive two more A320 plane beginning third quarter of the year for flight services to Japan.

Marianne Hontiveros, CEO of Philippines AirAsia, said the airline was looking at flights to Narita, Nagoya and Osaka as well as to China and some expansion of its domestic market.

AirAsia Zest currently 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.

Detail: Zest Air Asia Adds 2 A320 For Japan Services

0 Z2 Miscalculates Kalibo Airport

Skids off runway

20 December 2014

A Zest Air Asia Airbus 320 plane (RP-C8988) bound for Busan carrying 137 passengers and 7 crew on board skidded off the runway at Kalibo International Airport Thursday afternoon after its front tires rolled into soft ground as the pilot tries to maneuver the aircraft for u-turn in preparation for take-off , the Civil Aviation Authority of the Philippines (CAAP) said.

The incident which occurred at around 3:15 p.m caused the temporary closure of Kalibo aiport delaying six flights in an out of the airport.  There were no injuries reported as the aircraft was towed back to the tarmac.

CAAP Deputy Director General John Andrews said the plane will not be allowed to proceed to Busan, and its pilot and crew are automatically grounded. Passengers however will be permitted to fly home on another aircraft of Zest Air Asia.

Meanwhile CAAP is sending investigation team to Kalibo to check on the airworthiness of the aircraft and investigate the crew as well as secure data from the flight data recorder.

Detail: Z2 Miscalculates Kalibo Airport

0 AirAsia PH seeking Congress approval of Zest Air takeover

By Darwin G. Amojelar
InterAksyon.com

12 October 2013

The local unit of Southeast Asia's largest budget airline is seeking the Philippine Congress' approval of the takeover of Zest Air.

"We have already submitted our application to the Committee of Franchise. [But] we haven't reached the official inclusion in an agenda for Congress deliberation," Joy Caneba, AirAsia Zest executive vice president and chief operating officer told reporters.

Caneba said Philippines AirAsia plans to acquire more than 51 percent of Zest Airways Inc., which has been re-branded to AirAsia Zest.

"Hopefully, we can get it by the end of the year," she said.

Philippines AirAsia holds an 85 percent economic stake and a 49 percent voting interest in Zest Air, which in turn owns a 15 percent stake in the former.

AirAsia group owns 40 percent of Philippines AirAsia. The remaining 60 percent is held by Marianne Hontiveros, Michael Romero, Antonio Cojuangco and former ambassador Alfredo Yao.

Caneba said the Securities and Exchange Commission, Civil Aeronautics Board and Civil Aviation Authority of the Philippines already approved the rebranding of Zest Air into AirAsia Zest.

"Effective last week we were able to roll out a new brand, so Zest Air is now rebranded to AirAsia Zest. With the Air Asia name on board, we feel that we are able to offer better service and convenience to the passengers. There would be a lot more product and services that will be rolled out in the couple of months and years to come," Caneba said.

With the rebranding, she expects an increase and improvement in passenger traffic.

"Zest has a very good brand but I think with Air Asia name backing up, that should give more leverage and comfort to the passengers. So, we expect an increase in traffic for both domestic and international route.  For 2013, we expect to grow at least 15 to 20 percent," Caneba added.

The airline will launch flights between Cebu and Puerto Princesa, Davao and Cagayan de Oro starting November 15 with an all-in promo fare of P553. Also, Cebu-Kuala Lumpur flights would be offered at a promo fare of P680.

AirAsia Zest serves Kalibo (Boracay), Puerto Princesa (Palawan), Cebu, Davao, Tagbilaran, and Cagayan de Oro in the Philippines and international points in Asia including China and South Korea.

AirAsia Zest operates a fleet of 13 servicing nine domestic and four international routes from Manila’s Ninoy Aquino International Airport (NAIA).

Detail: AirAsia PH seeking Congress approval of Zest Air takeover

0 Air Asia X To Open Philippine Hub

Takes Over Clark Operations 
as short haul subsidiary invades NAIA

12 October 2013

After failing to make its low cost carrier brand worked in Clark International airport, Malaysia-based Airline AirAsia Berhad is preparing to bring into the Philippines its long haul subsidiary brand Air Asia X for flights to Australia, the Middle East and the United States.

AirAsia Zest chairman Michael Romero said AirAsia X will operate from Clark airport in two years time after they consolidated the operations of its short haul subsidiary out of Ninoy Aquino International Airport (NAIA) Terminal 4.

“Our business model of making Clark our regional hub is not working for us. But Clark is now becoming a long-haul facility for airlines, and we are taking their cue” Romero said.

Earlier, the Malaysia based company infused another $100 million into Zest Airways operations to expand its fleet operations.

Owners of Air Asia Zest include AirAsia Berhad which hold the majority share of 40% while the rest belongs to Michael Romero, Antonio Cojuangco Jr., Marianne Hontiveros and Alfredo Yao.

“We will formally relaunch as Air Asia Zest. We will acquire more planes. Right now, we have 13 planes. We’ll go to 16 planes before the end of the year,” Romero said.

Air Asia Philippines will fly the Air Asia X brand while Air Asia Zest will take charge of its short haul operations feeding traffic to the former.

Romero, who is vice chairman of AirAsia Philippines, explained the necessity of building its domestic and regional network from AirAsia Zest as it would pool traffic from Manila's short-haul flights and transfer them to Clark for AirAsia X long haul flights.

Air Asia X intends to operate a mix fleet of 5 Airbus 330-300 and pairs of Airbus 350-900 planes initially out of Clark Airport says Romero, with the A330 all being bound to the Middle East and Australia while the A350-900 is intended for US destination particularly Los Angeles.

The Air Asia group intends to  ferry passengers between the two airports from NAIA to Clark and vice versa.

Detail: Air Asia X To Open Philippine Hub

0 Clark Fails AirAsia

Relocates to Manila

19 September 2013

Clark Airport doesn't work. At least for Air Asia Philippines(PQ) which learned it the hard way after operating barely two years at Clark despite backings from Air Asia Berhad, Asia's biggest low cost carrier.

Air Asia will suspend all flights out of Clark effective 8 October said airline CEO Marianne Hontiveros last week.

Hontiveros disclosed the airline's scaling back operations was necessary because the company was reassessing its strategy and needs to cut unprofitable routes.

To survive competition it bought Zest Airways to gain access at Manila's Ninoy Aquino International Airport valuable airport slots where it is diverting financial and manpower resources to support its affiliate's operation.

Despite this setback the Transportation Department (DOTC) remains keen on putting up a new budget terminal for Clark International Airport in Pampanga as it implements the dual airport system strategy.

Transport Secretary Joseph Abaya said the government was keen on supporting both Ninoy Aquino International Airport and Clark with the addition of new terminals catering to the fast-growing budget airline segment.

DOTC will build budget terminals for Clark and NAIA which could be built over the next two to three years.

The budget terminal for Clark would expand its capacity by about 4.5 million passengers while NAIA capacity will accommodate about 10 million passengers more from the present 25 million passengers per annum.

Detail: Clark Fails AirAsia

0 Zest Air Asia, A Lot More Work!

23 August 2013

The Philippine affiliate of AirAsia (PAA) needs a lot of work according to its Chief Executive Officer in a press statement released yesterday.

AirAsia Group CEO Tony Fernandes said Wednesday that strategic alliance with Zest Air is only the first step and a lot more work needs to be done in terms of integration and rationalisation of routes and resources, and maximising the slots in Manila.". 

PAA saw a dramatic 304% year-on-year increase in revenue in the second half of  2013 after being in operations for over just a year following the integration with Zest Airways.

“The recent strategic alliance with Zest Air which was officially approved on 10 May 2013 boosted PAA’s operational numbers.” said PAA’s CEO  Maan Hontiveros.

“Total passengers carried during the quarter was up 114% to 0.14 million which led to a 28ppt increase in load factor at 76% as compared to 48% in 2Q2012. RASK was also up by 66% and CASK was down by 43% y-o-y which means that we are moving in the right direction.” adds Hontiveros.

Honitveros stated that “further integration is being done between PAA and Zest Air, focusing on the maximisation of high value Manila slots.”

The recent suspension of Zest Airways did not affect the operations of PAA.

The Philippine Air Asia Group maintains a fleet of 14  A320 aircraft, with 3 aircraft operated by PAA. The group expects delivery of 2 more A320's before the end of the year.

Detail: Zest Air Asia, A Lot More Work!

0 Zest Air Resumes Flight

21 August 2013

Low-cost carrier Zest Air was cleared to fly again Tuesday, August 20, but only with respect to 3 of its 11 aircraft fleet.

The clearance came after Zest Air reinstated its accountable manager Captain Ely Tabora, who previously resigned last July 17 as Chief Operating Officer due to policy difference with airline management.

CAAP said that Zest Air had 10 days to replace Tabora and his replacement had to be approved by the CAAP. But the airline failed to announce replacement, alleging instead that it has appointed Zest Chairman Alfredo Yao without notifying CAAP until it was suspended.

Yao's appointment was declined by CAAP as unacceptable due to qualification rules. An accountable manager ensures that all flight operations and maintenance activities can be financed and carried out to the highest degree of standards required by the authority.

John C. Andrews, Deputy Director of CAAP, disclosed that Flight Safety Inspectorate Service (FSIS) personnel are thoroughly conducting an examination of the carrier’s 11-aircraft fleet but these inspectors were unable to complete the review of all aircraft because of bad weather.

Cleared for take off are the following A320 aircraft registered as RP-C8994, RP-C8996 and RP-C8993.

The rest of Zest Air fleet is expected to be cleared by Friday.

Detail: Zest Air Resumes Flight

0 We Are Safe and Airworthy Airline!

PRESS STATEMENT OF ZEST AIR MANAGEMENT

17 August 2013

In response to the order of suspension from CAAP, we are surprised that this was issued without giving us an opportunity to properly respond to their issues raised. The management of ZestAir have been in full cooperation with CAAP in ensuring that the maintenance programs and policies of ZestAir are in place. All findings in CAAP’s letter have already been appropriately addressed and we believe that they do not merit suspension and grounding of our operations.

We wish to highlight and reiterate that all eleven (11) aircrafts are safe and airworthy. We will never risk the safety of our passengers. The reason why management in the past weeks have decided to voluntarily stop our aircraft from flying is to proactively ensure that any issues discovered, are rectified or properly addressed before we use the aircraft for commercial operations.

With due respect to CAAP, our reports on how we addressed the incident in Kalibo reflected this and is confirmed by CAAP inspectors that no maintenance procedural lapses were committed and that the aircraft concerned is not subject to any technical problems. The incident in Tagbilaran would have been addressed sooner had we not been required to have the maintenance rectification inspected by CAAP personnel. It is unfortunate that Tagbilaran airport has only one runway and ramp, and this is the reason why the incident snowballed to have affected so many passengers.

Our accountable manager is Ambassador Alfredo M. Yao who is the President and Chief Executive Officer of Zest Air.

In addition, all our mechanics have valid licenses to perform their jobs despite CAAP’s concern where one of our mechanics did not possess the license physically on him but was stored within the work area. Furthermore, none of our pilots or crew are exceeding their duty time limitations.

ZestAir will be submitting a copy of the comprehensive improvement program that is currently being implemented in ZestAir to provide our passengers an improved experience, product and services. We have been investing significantly in our operations and fleet to further raise the standards of excellence across all aspects of personnel, parts, and maintenance/technical services.

Detail: We Are Safe and Airworthy Airline!

0 CAAP Suspends Zest Air

Tagbilaran Airport sealed Zest Air's Fate

16 August 2013
       SAFETY VIOLATIONS

• No qualified Accountable Manager since July 19, 2013
• Failure to check aircraft logs, flight manifest, weather, etc.
• Failure to present to the CAAP the airman license (Aircraft Mechanic License) during ramp inspection
• Series of occurrences that affected several flight operations
• Refueling with passenger on board involving RP-C8989 on August 14, 2013
• Excessive flight duty time case under the enforcement and legal service

The Civil Aviation Authority of the Philippines (CAAP) has suspended Zest Airways after serious deviations and infractions of rules and safety standards imposed by the Philippine Civil Aviation Regulations (PCAR).

Suspension of Zest Air flights is effective 6 pm this evening. No flights will be permitted to depart except return flights to Manila. Passengers affected are advised to contact the airline for possible transfers or ticket refunds.

Philippine Airlines is contracted by Zest Air to provide special flights for Zest Air's stranded passenger starting in Davao tonight under PAL Express.

Zest Air operates a fleet of 11 Airbus 320's serving 14 destinations consisting of 35 flights out Manila, 8 flights out of Kalibo and a flight from Cebu.

Operations of Air Asia is not affected but the airline's aircraft will not be permitted to land at NAIA Airport.

The Suspension Order was issued by Captain John Andrews, CAAP Deputy Director General.

Earlier, CAAP placed Zest Air under "heightened" surveillance effective August 2 following a series of flight cancellations brought about by alleged mechanical problems of its aircraft.

Recent incident at Tagbilaran Airport Tuesday sealed Zest Air's fate when its ailing Airbus 320 plane obstructed the runway due to mechanical problems with the engine resulting to closure of the airport for commercial traffic.

 Zest Air’s will remain suspended until further notice.

Detail: CAAP Suspends Zest Air

0 What Drives Zest Air's Cancellations?

Empty Seats

2 August 2013

The Civil Aviation Authority of the Philippines (CAAP) has said enough of Zest Airways excuses of cancelling flights as it placed the airline under "heightened" surveillance by safety inspectors following its repeated cancellation of flights due to alleged mechanical problems.

Sources in the industry however discloses that the airline is not generating enough passengers for some of the scheduled flights for which reason they have been cancelled during the past weeks causing inconvenience to its booked passengers.

In July, the carrier cancelled a total of 33 flights mostly going to Kalibo.

Today Zest Air cancelled flight 326 bound for Tacloban.Yesterday the airline cancelled 8 flights all due to aircraft situation problem.

CAAP Deputy Director General John Andrews said that airlines has a habit of cancelling flights with low booking, and just reason out aircraft situation as the problem.

Andrew said they will inspect not only Zest Air aircraft but also other operators who cancels flight due to flight situation problems and find out whether actual maintenance and repair is done and made on the aircraft as has been reasoned out.

Detail: What Drives Zest Air's Cancellations?

0 Air Asia opens Cagayan De Oro

June 14, 2013

Air Asia Philipines opens Cagayan de Oro's newest Airport with 3 new daily flights to Manila. Laguindingan Airport opens to the public tomorrow. 

Flights will be on the following schedules:
Z2340 MNL0540 – 0715CGY 320 D
Z2593 MNL1225 – 1400CGY 320 D
Z2348 MNL1400 – 1535CGY 320 D

Detail: Air Asia opens Cagayan De Oro

0 Air Asia Philippines rationalizes operations

Opens Manila beginning June 15

June 13, 2013

Philippine Air Asia announced route rationalization last week as it reduces flights to Taiwan, Malaysia, Hong Kong and Singapore from Clark starting June 15.

The airline currently operates out of Clark and flies to Singapore, Taipei, Bangkok, Kuala Lumpur and Hong Kong with domestic flights to Davao and Kalibo using two Airbus A320 aircraft.

Air Asia said the reduction is part of its "operational realignment" as it transfer one aircraft to Manila to launch flights to Cagayan de Oro, Ho Chi Minh and Macau. 

The additional aircraft will also make a run to Cebu, Bacolod, Davao and Kuala Lumpur augmenting the operations of Zest Air fleet which desperately need more planes for expansion.

The airline said that all the Zest Air fleet will be painted soon with Air Asia colours starting with the Clark-based aircraft.

Affected flights include Kuala Lumpur which would be cut from 10 times a week to three, and would be mounted by Air Asia Malaysia.

Flights to and from Hong Kong would go down from 10 times a week to seven, while those to and from Singapore would be reduced from seven times a week to three, specifically every Tuesdays, Thursdays and Saturdays.

Recently introduce flights to and from Taipei would be cut from seven times a week to four.

The airline said it would offer options to customers who already have bookings after June 15 "to alleviate the inconvenience caused."

Air Asia Philippines acquired 49 % of the voting rights and an 85 % economic interest in Zest Airways including the acquisition of 100 % of Asiawide Airways Inc. which transaction was sealed in May 10, where Alfredo Yao secures 13 % stake in Air Asia Philippines for $16 million US dollars.

Air Asia Philippines is 40 percent owned by Air Asia Berhad, through AA International. The remaining 60-percent is held by Filipino businessmen Maan Hontiveros, Michael Romero and Antonio Cojuangco.

Detail: Air Asia Philippines rationalizes operations

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.

Detail: Marriage Out of Wedlock

0 Zest Air Bids MA-60 Goodbye as they become Air Asia

Turboprop routes axed

April 5, 2013

Busuanga, Masbate, Marinduque and Tablas will be delisted from the airlines route network effective May 11, 2013, after the airline's management was transferred to Air Asia Philippines (AAP) group, a subsidiary of Malaysia-based Air Asia Berhad. Zest Air said that they will return the aircraft to the aircraft lessor in China. Landing slots for these aircraft will be replace by Airbus 320's for services to Cagayan de Oro, Bacolod and Zamboanga. The airline will introduce more A320s to the fleet ordered by AAP to be painted soon in Air Asia colours.

Detail: Zest Air Bids MA-60 Goodbye as they become Air Asia

0 Air Asia buys into Manila after Tata

Take Zest Air to their fold

March 11, 2013

Air Asia Berhad is buying all the minority stake in Zest Airways as Air Asia Group bids to create a stronger presence at Ninoy Aquino International Airport and break the current duopoly between PAL and Cebu Pacific.

Alfredo Yao is expected to keep majority ownership of ZestAir under a joint venture agreement similar to Tata Sons Ltd. starting a low-cost airline in India, but will cede management control to the Malaysia-based airline conglomerate. The deal is expected to consolidate operations between Air Asia Philippines and Zest Air across the country under a common brand.

Detail: Air Asia buys into Manila after Tata

0 5J expands CEB to KL and Bangkok, Zest to DVO and PPS

December 10, 2012

Cebu Pacific is expanding its regional network from Cebu, with the launch of direct twice weekly flights  to both Kuala Lumpur and Bangkok on December 8 and 9, 2013.

The airline will begin operating a Tuesday, Saturday service from Cebu to Kuala Lumpur leaving Cebu at 4:45 p.m., and arriving in Kuala Lumpur at 8:10 p.m. The return flight to Cebu will depart at 8:55 p.m. and will arrive at 12:20 a.m. the next day. On Dec. 9, 2012, It will launch its Thursday, Sunday service to Bangkok with flight departing Cebu at 4:50 p.m., and arriving Bangkok at 7:20 p.m. The return flight leaves Bangkok at 8:10 p.m. and arrives in Cebu at 12:40 a.m. the next day.

Cebu Pacific flies Seoul (Incheon), Pusan, Hong Kong and Singapore from Mactan Cebu Airport.

Meanwhile,  Zest Air will start offering direct flights from its Cebu hub to Davao and Puerto Princesa in Palawan on Dec. 20, 2013 using Airbus 320 planes.

Detail: 5J expands CEB to KL and Bangkok, Zest to DVO and PPS