ZestAir gets more investment offers

MANILA, Philippines - Budget airline Zest Airways Inc. has been receiving offers for possible equity investments, an official said.

ZestAir chairman Donald Dee told reporters in a chance interview yesterday that the carrier has been getting offers from different firms looking to purchase a stake in the airline.

“The offers keep coming,” he said.

But he declined to identify the firms that have offered to acquire a stake in the airline.

Last week, Gokongwei-owned Cebu Air Inc., the operator of budget carrier Cebu Pacific, announced it is interested in ZestAir.

Dee said it was Cebu Air that approached them regarding the possible investment.

Cebu Air said in its disclosure last week, however, that it was approached by ZestAir “to indicate its interest in the opportunity.”

Cebu Air also said that any interest the company had in ZestAir was “indicative and non-binding.”

It likewise cited it was not doing any due diligence on ZestAir.

ZestAir president Alfredo Yao declined to comment yesterday when asked for an update on Cebu Air’s possible investment.

Earlier, Yao said the carrier was pursuing talks with investors, including Hainan Air of China, for a 40-percent stake in ZestAir as it prepares for its plan to go public in the next two years.

ZestAir is undertaking a five-year refleeting program as it looks to add up to three aircraft to its fleet every year.

Zest Air is likewise aiming for revenues this year to exceed last year’s P6 billion as it increases the number of flights and serves more passengers.