Saturday, October 13, 2012

AirAsia ditches plan to buy Batavia Air

JAKARTA, Oct 11 — Budget carrier AirAsia Bhd and Indonesian ally PT Fersindo Nusaperkasa are not buying PT Batavia Air now as all parties have failed to reach an agreement, Dow Jones Newswires quoted the Indonesian domestic airline as saying today.

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

The newswire reported that Tansari declined to specify whether they failed to reach an agreement on the value of Batavia Air.

AirAsia, Asia’s largest budget airline by fleet size, announced in July a planned purchase of a 49 per cent stake in Batavia Air, while Fersindo would buy the remaining 51 per cent to comply with Indonesian laws. The companies were expected to pay a total of US$80 million (RM248 million) for Batavia Air.

 Dow Jones said officials at AirAsia and Fersindo weren’t immediately available for comment.
Indonesia is seen by many analysts as one of the world’s last markets for large growth in air travel.

While its population of about 240 million people makes Indonesia the world’s fourth most populous country after China, India and the US, only a small portion of its citizens have experienced air travel
The number of domestic and international passengers in the air in Indonesia rose more than 65 per cent in the past two years to about 68 million last year, according to Indonesia’s Directorate General of Civil Aviation.

Article taken from themalaysianinsider

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