AirAsia, the World’s Best Low-Cost Airline has covered a PHP788million (USD18million) loan to AirAsia Zest (Z2, Manila) regulatory filings have revealed. According to media source, The Malaysian carrier said the loan would go towards the facilitation of AirAsia Zest’s “ordinary course of business.”
“We hope to be black in the back by the last quarter of 2014.”
“This is to support our operations,” Alfredo Yao, AirAsia Zest’s founder and majority shareholder, told the Philippine Daily Inquirer.
AirAsia’s Philippines’ counterpart have struggled financially due to stiff competition with Philippine Airlines and other low-cost carriers in the domestic market in addition to the increased fuel prices.
Using a fleet of sixteen A320-200s and an A319-100, AirAsia Zest serves 14 destinations located throughout the Philippines, China, South Korea, Macau and Malaysia. Together with its sister carrier, Philippines AirAsia (PQ, Manila), the two carriers command a 10% share of the local market.