In the world of business, rumors can run rampant and stir up unnecessary confusion. One such case involved both Aboitiz Equity Ventures and AirAsia Philippines. A recent media report claimed that Aboitiz had gained majority ownership of Philippines AirAsia. However, Aboitiz swiftly refuted this claim in a formal filing with the Philippine Stock Exchange (PSE) on July 3, stating that the report was inaccurate and baseless.
In their statement to the PSE, Aboitiz clarified, “Earlier today (July 3), a major newspaper published an article stating that the Aboitiz Group has acquired a majority stake in the low-cost carrier AirAsia Philippines. We would like to clarify and state that this information is not true or accurate.” Not long after, Philippines AirAsia echoed this sentiment, issuing their own statement to deny the report.
The Faulty Report and Its Claims
The now-deleted article from The Philippine Star suggested that Aboitiz had seized control of an organization known as AA Com Travel Philippines, Inc (AA Com). This entity, according to the report, procured a 60% stake in Philippines AirAsia in June, after buying the shares owned by F&S Holdings, Inc. The remaining 40% stake in the budget airline, the report stated, belongs to Capital A founders Tony Fernandes and Kamarudin Menarum.
The media piece suggested that Sabin Aboitiz, Aboitiz’s President and CEO, had met with Fernandes, and that Aboitiz was planning to invest the necessary capital “to keep up with competitors.” The article further claimed that Aboitiz was eager to invest in order to “rehabilitate and upgrade” the Daranga Bicol and Panglao airports.
Aboitiz Group
The Aboitiz Group, the entity behind Aboitiz Equity Ventures, has far-reaching interests beyond its publicly-listed ventures. In addition to portfolio management, the group also has stakes in unlisted shipbuilding operations (in a joint venture with Japan-based shipbuilder Tsuneishi Group) and in large-scale project management businesses. The company has been under the Aboitiz family’s stewardship for five generations, a noteworthy accomplishment in the business world.
AirAsia Philippines was established in 2015 as a partnership between F&S Holdings and the Capital A founders. As of now, the airline possesses twenty-five A320-200s in its fleet, and it services 26 destinations across nine countries.
Despite the rumors and speculation, the facts remain clear: Aboitiz Equity Ventures has not acquired majority ownership of AirAsia Philippines
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