AirAsia to buy-out Indonesian airline

Expanding its presence in Southeast Asia, AirAsia has released plans to purchase Indonesia’s Batavia Air for up to US$80 million.

Subject to Indonesia’s regulatory approval, AirAsia is hoping to finalise the transaction by the second quarter of next year, when it will hold up to 49 percent stake in the airline while the remaining 51 percent will be owned by Fersindo, The Sydney Morning Herald reported.

The airline’s chief executive Tony Fernandes said he is moving to Jakarta to oversee the purchase that would “accelerate” the carrier’s growth in “the most exciting aviation markets in Asia”.

"The total purchasing consideration for Metro Batavia Group is $US80 million and will be settled in cash," a statement from the airline read.

This week the airline Group also announced a 13 percent increase in passengers boarding its flight during the second quarter of 2012 compared to last year.

Sourced: etravelblackboardasia