Expedia increases ownership in AirAsia-Expedia joint venture
Expedia has entered into an agreement with AirAsia Berhad to purchase an additional 25% equity interest of AAE Travel Pte. Ltd., the joint venture formed between the two companies in 2011, for cash consideration of $86.3 million. This investment will increase Expedia’s total ownership in the joint venture to 75%.
“Asia continues to be a fast-paced, growing market, and partnering with a powerful brand like AirAsia has been instrumental in driving the expansion of our business in the region,” said Dara Khosrowshahi, President and Chief Executive Officer, Expedia, Inc. “We continue to value and look forward to a great ongoing relationship with them as we bring our world-class technology and supply to travelers across Asia.”
“Our partnership with Expedia has been and continues to be a terrific success for both companies,” said Tony Fernandes, Group CEO of AirAsia. “We are excited to continue the close relationship between Expedia and AirAsia to deliver unrivaled travel experiences for Asian consumers.”
The transaction is expected to close in the first half of 2015, at which point Expedia expects to include the AirAsia-Expedia Joint Venture financial results in Expedia’s consolidated financial statements.