Malaysia-based budget airlines Air Asia acquires 100 pct shares of Indonesian airlines

JAKARTA, July 26 (Xinhua) -- A senior official at Malaysia- based budget airlines, Air Asia Berhad, said on Thursday that it has acquired 100 percent share of Indonesian budget airlines, Batavia Air, worth 720 billion rupiah (about 75.9 million US dollars).

The acquisition was conducted by Air Asia's company operating in Indonesia, PT Fersindo Nusaperkasa. Under their internal agreement, Air Asia Berhad owns 49 percent of Batavia shares, while the large remaining ones are occupied by PT. Fersindo Nusaperkasa.

Indonesia Air Asia President Director, Dharmadi, said that the money used to finance the acquisition comes from the company's internal coffers.

The signing of the share acquisition agreement was conducted here, by Air Asia Group CEO Tony Fernandes, PT Farsindo Nusaperkasa President Director Dharmadi and the owner of Batavia Air, Yudiawan Tansari.

The acquisition was conducted in two phases, with the initial process will be conducted on 76.95 percent of Batavia Air's shares and to be followed by acquisition on the remaining 23.5 percent of Indonesian airlines' shares.

"It is hoped that the acquisition can be completely done early next year, approved by the country's authority," Dharmadi said.

Tony Fernandes said that the acquisition was aimed at strengthening Air Asia's presence in Indonesia's lucrative air transport market. He said that Batavia Air already has good destinations and distribution network that would make integration between the two airlines resulted in perfect flight business.

Sourced: Xinhuanet