Thursday, October 11, 2012

AirAsia scrapped plans to buy Batavia Air

AirAsia, the biggest budget carrier in Asia and Fersindo Nusaperkasa, its Indonesian partner, have scrapped plans to buy Indonesian carrier Batavia Air after the sides failed to reach an agreement, Dow Jones Newswires reported on Thursday, quoting an official at Batavia Air. 

“We will continue to seek strategic partners to develop our business,” Batavia Air chief executive director Yudiawan Tansari told Dow Jones. 

Yudiawan’s response confirmed an earlier report from Investor Daily that said the deal was on the verge of collapse

In a memorandum of understanding signed in July, AirAsia and its partner bought Batavia from Metro Batavia for about Rp 750 billion ($78.3 million). 

The deal would give Fersindo a 51 percent share in Batavia, with the remaining 49 percent going to AirAsia. It was scheduled to be completed by the second quarter of 2013. 

A source at Investor Daily said AirAsia and its partner wanted to lower the selling price that had been agreed upon. Existing investor Metro Batavia refused.

AirAsia and Fersindo are partners in Indonesia AirAsia, the local unit of the Malaysia-based budget carrier. 

AirAsia, which plans to move its base to Jakarta, has been aggressive in leveraging its strength in Asia’s burgeoning airline industry. (Jakarta Globe)

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