Budget airline AirAsia has revealed plans to purchase Indonesian airline Batavia Air for a sum of USD $80 million . This acquisition will help AirAsia compete in Indonesia, the biggest market in Southeast Asia.
The acquisition should be completed by the second quarter of 2013. In accordance with Indonesian ownership laws, AirAsia will own 49% of Batavia Air and the other 51% will be owned by the Indonesian firm Fersindo.
“The Batavia Air acquisition is a fantastic opportunity for AirAsia to accelerate our growth plans in one of the most exciting aviation markets in Asia and further underlines our belief in the growth potential of Indonesia’s aviation sector,” said Tony Fernandes, the AirAsia Group Chief Executive.
Once the acquisition is complete, Indonesia AirAsia and Batavia Air aim to carry more than 14 million passengers to 42 domestic destinations across Indonesia as well as 12 international destinations.