AirAsia spreads wings with full divestment from Expedia JV

The Expedia Group is buying up AirAsia’s remaining 25 per cent equity interest in AAE Travel, a joint venture formed by the two firms in March 2011 and in which Expedia Group has held 75 per cent equity since 2015.

AAE Travel had started out as a 50-50 partnership that gave Expedia exclusive online, third-party distribution rights of the airline’s flights and packages in Asia-Pacific, excluding Australia and New Zealand.

AirAsia’s divestment effectively dissolves the deal, opening up the LCC to new distribution channels, and prompting Expedia Group to integrate websites localised during the tie-up into its global platform.

The cash consideration for Expedia Group’s ownership is US$60 million, and excludes AirAsia’s concurrent purchase of AirAsiaGo.com domain names and related assets from AAE Travel.

AirAsiaGo.com, which offers a full suite of travel products including AirAsia flight and hotel packages featuring Expedia Group lodging content, will continue to be powered by Expedia Group.

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