View Full Version : AirAsia Buys 76 Per Cent Stake In Indonesia's Batavia Air
26th Jul 2012, 17:36
What a load manure... TF.. Batavia strong in domestic... more like dangerous in domestic, lookat the Haji flights... I guess everyone in Batavia is looking for the chop...basically its is only the bargain basement airline that for sale..
July 26 (Bernama) -- AirAsia and its Indonesian unit, AirAsia Indonesia, has acquired Indonesia's Batavia Air, a move that will boost the no-frills airlines' presence and network in the republic in a cash deal worth US$80 million or RM253 million.
AirAsia Chief Tan Sri Tony Fernandes said Batavia Air's acquisition fitted well to complement the budget carrier's international network, which was continuously growing.
"It's a fantastic fit as Batavia is strong in domestic and we're strong at international. It's a big dream come true for me," Fernandes said in his latest posting on social networking site, Facebook.
In a statement issued by the company later, AirAsia said its wholly-owned subsidiary, AirAsia Investment Ltd, has signed an agreement with its partner, PT Fersindo Nusaperkasa, to acquire PT Metro Batavia, which operates Batavia Air and Aero Flyer Institute (AFI), an aviation training school.
The tripartite agreement was signed in Jakarta today between AAB, Fersindo and Metro Batavia.
27th Jul 2012, 01:04
From another source
AirAsia and partner acquire Batavia Air
Mavis Toh Singapore
Source: Flight Global
Low-cost carrier AirAsia, together with a partner firm, has inked an agreement to acquire Indonesian carrier Batavia Air, in a move that will allow it to capture a bigger portion of the growing Indonesian market.
Under the conditional share sale agreement, AirAsia and trading firm Fersindo Nusaperkasa, which owns a 51% stake in AirAsia Indonesia, will acquire Metro Batavia for $80 million in cash. Metro Batavia operates both Batavia Air and aviation training school Aero Flying Institute.
AirAsia will hold a 49% stake in the deal while Fersindo will hold the majority 51%.
The acquisition will be carried out in two phases - first a buyout of a 76.95% stake followed by the remaining 23.05%, AirAsia said in a statement.
The deal is expected to be concluded by the second quarter of 2013, subject to Indonesian regulatory approvals.
It will also increase AirAsia's competitiveness in a market crowded with LCCs such as Lion Air, Mandala Air and Citilink.
"The addition of Batavia Air will provide AirAsia immediate access to an enlarged fleet of aircraft, experienced pilots and flight crew and increasingly competitive slots at major Indonesian airports at a time when Indonesia's travel sector is experiencing double-digit growth," says AirAsia.
The acquisition of Batavia will provide greater domestic connectivity and an extensive feeder network into AirAsia Indonesia's existing hubs in Jakarta, Bandung, Denpasar, Medan and Surabaya. Once complete, the two airlines will together be able to fly more than 14 million passengers to 42 Indonesian destinations, AirAsia says.
Batavia Air operates a fleet of 33 737s, A320s and A330 aircraft.
"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," says AirAsia group chief executive Tony Fernandes.
Fernandes recently relocated to Jakarta, where he is leading the carrier's regional office to focus on growth in the region.Just like he did when he bought into MAS to get rid of FireFly, Fat Tony will do anything he can to kill those who compete against him. He has stated more than once that he hates competition. Glad he has moved to Indonesia. Malaysia needs a break from TF.
27th Jul 2012, 12:44
Malaysia-based AirAsia said on Thursday it is paying $80 million in cash for Indonesia’s Batavia Air, as the region’s biggest budget carrier spreads its wings in Southeast Asia’s largest economy.
“In accordance with Indonesian civil aviation ownership regulations, AAB will hold a 49 percent stake in Metro Batavia Group with the 51 percent majority held by its Indonesian partner, Fersindo,” the group, AirAsia Berhad (AAB), said in a statement.
“The acquisition of 100 percent interest in Metro Batavia by AAB and Fersindo will be carried out in two stages, through acquisition of a majority 76.95 percent stake and subsequently followed by the remaining 23.05 percent held by its existing shareholders.”
Acquisition is expected to be completed by the second quarter of next year, and is subject to regulatory approvals in Indonesia, it said.
“The total purchasing consideration for Metro Batavia Group is $80 million and will be settled in cash,” the statement added.
AirAsia has been shoring up its presence in the region against a host of other competitors, including Lion Air, Indonesia’s largest low-cost carrier.
“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, group CEO and director of AAB.
Batavia Air is a largely domestic carrier with about 30 planes and a few international routes such as Jeddah, Singapore and Guangzhou.
It has been bouncing through financial turbulence recently, with the Transportation Ministry confirming the carrier was forced to return two leased Boeing 737 airliners to its owners after failing to pay overdue bills.
Demand for air travel in Indonesia, an archipelago of more than 17,000 islands with a growing middle class among its 240 million population, has been soaring.
Its domestic airlines carried more than 60 million passengers last year, and the Indonesia Air Carriers Association (Inaca) predicts a 52 percent increase in passenger numbers by 2015.
27th Jul 2012, 17:56
The Transportation Ministry says it has not officially been informed of the acquisition of Indonesian Batavia Air by Malaysia's AirAsia.
“That means it is not yet certain if the ministry will approve the acquisition,” Herry Bhakti, the ministry's air transportation director general, said here on Friday.
The ministry has yet to determine if the acquisition is in line with the prevailing regulations, such as those concerning the division of Batavia Air's shares, Herry said.
An Indonesian regulation prevents foreign investors from holding a majority stake in an airline operating in the country.
AirAsia Berhad and Fersindo Nusaperkasa, which are partners in Indonesia AirAsia, were reported on Thursday to have acquired Batavia Air at a price of $80 million.
“After months of negotiations, finally we came to an agreement to develop a relationship between AirAsia and Batavia Air,” AirAsia Berhad CEO Tony Fernandes told reporters in Jakarta.
Fernandes expressed satisfaction with the deal, citing Batavia Air’s strong market position in Indonesia. Through the “perfect marriage,” AirAsia is set to grab a larger share of the Indonesian market, he said.
Fersindo's president director, Dharmadi, said his company will hold the majority 51 percent stake in Batavia, with AirAsia Berhad to take the remaining 49 percent.
Fersindo also has a 51 percent stake in Indonesia AirAsia, with the Malaysian partner a 49 percent shareholder.
Dharmadi, who is also the president director of Indonesia AirAsia, said acquisition of the whole of Batavia Air’s shares would be made in two phases.
In the first phase, the two partners will acquire 76.95 percent of Batavia Air, to be followed with a second phase for the remaining 23.05 percent share in the second quarter of 2013, he said.
29th Jul 2012, 02:44
The Ministry will approve it after so called negotiations I am sure:}