Budget airline Air Asia is planning to buy a stake, Batavia Air, in a bid to expand the Malaysian carrier’s presence in Southeast Asia’s largest economy.
AirAsia will buy a 49% stake in Batavia Air, while AirAsia’s partner, PT Fersindo Nusaperkasa, will purchase the remaining 51%. Both deals will total $80 million, according to reports.
“The Batavia Air acquisition is a fantastic opportunity for AirAsia to accelerate our growth plans in one of the most exciting aviation markets in Asia and further underlines our belief in the growth potential of Indonesia’s aviation sector,” said AirAsia Group Chief Executive Tony Fernandes.
Fernandez revealed that he expected the acquisition to be completed in the second quarter of next year.