AirAsia to buy Indonesia's Batavia Air
Publish date: Thu, 26 Jul 2012, 09:03 AM
JAKARTA: Malaysian low cost airline AirAsia Bhd is set to buy Indonesian low cost carrier Batavia Air as it aims to expand in the Southeast Asia's biggest economy, an AirAsia executive at its Indonesian unit said on Thursday.
The move will likely lead to heightened competition among low cost carriers in Indonesia, including the nation's biggest low cost carrier, Lion Air, a unit of flag carrier Garuda Citilink, and Mandala Air, controlled by private equity Saratoga Capital.
Communication Manager Indonesia AirAsia Audrey Progastama Petriny said the signing ceremony and press conference for the plan would be held later on Thursday in Jakarta.
Petriny declined to give any details about the plan, including the deal value and the structure.
"We shall announce the details later today," he said.
Batavia Air confirmed the plan but declined to comment about details. -- Reuters
The move will likely lead to heightened competition among low cost carriers in Indonesia, including the nation's biggest low cost carrier, Lion Air, a unit of flag carrier Garuda Citilink, and Mandala Air, controlled by private equity Saratoga Capital.
Communication Manager Indonesia AirAsia Audrey Progastama Petriny said the signing ceremony and press conference for the plan would be held later on Thursday in Jakarta.
Petriny declined to give any details about the plan, including the deal value and the structure.
"We shall announce the details later today," he said.
Batavia Air confirmed the plan but declined to comment about details. -- Reuters
Labels: CAPITALA
Discussions
1 person likes this. Showing 6 of 6 comments
Batavia air is a very lousy investment... frequent crashes, bad service & old 1980's 737 plane. Anyway airasia has a big presence in Indonesia so actually no need to buy Batavia air. Suspect is to bail out crony company so Airasia Indonesia can list.
2012-07-26 10:03
in-line with the setting up of AirAsia ASEAN unit based in Jakarta!...
if you understand their business model, AirAsia is actually smart and making more money than you could ever thought off.. And the best part, 3.75 today is wayyy below their NTA and PE rating.. real value is about range of 4.50-5 plus.. and why today's price is not as their real value is the loans for their biggest order fleet with Airbus! but then again Airbus could not deliver on time, and compensation given to AA..just think about it.. the Jewel in the skies is flying low for grabs..
2012-07-26 10:05
not a bail out, but buying the flying rights.. AirAsia wouldnt want to operate with Boeing fleets. look the overall and the underlining reasons.. :)
2012-07-26 10:07
I agree with sheridansulik. Look at the whole picture, not just part of it.
2012-07-26 10:26
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2012-07-26 09:57