AirAsia to Buy Batavia Air
Jakarta: AirAsia said on Thursday it will buy Indonesia’s Batavia Air for $80 million (Dh293.77 million), as the region’s biggest budget carrier spreads its wings in Southeast Asia’s largest economy.
The Malaysia-based airline expects to complete the acquisition, which is subject to Indonesian regulatory approval, by the second quarter of next year as it moves to bolster its presence against fast-growing rivals.
In order to comply with Indonesian ownership law, AirAsia said it will hold 49 per cent of Batavia, while 51 per cent will be held by its Indonesian unit, Fersindo.
AirAsia chief Tony Fernandes, who recently announced he was moving to Jakarta to oversee the airline’s regional expansion, described the acquisition as a “fantastic opportunity”.