AirAsia has entered into a Conditional Share
Sale Agreement (CSSA) together with its partner PT Fersindo
Nusaperkasa to acquire Metro Batavia, which operates the
Indonesian airline, Batavia Air, and Aero Flyer Institute (AFI),
an aviation training school.
In accordance with Indonesian civil
aviation ownership regulations, AirAsia Berhad (AAB) will hold a 49% stake in Metro
Batavia Group with the 51% majority held by its Indonesian
partner, Fersindo. Fersindo is also the 51% majority shareholder
of PT Indonesia AirAsia (IAA).
The total purchasing
consideration for Metro Batavia Group is US$80 million (equivalent
to approximately RM253 million) and will be settled in cash.
acquisition of 100% interest in Metro Batavia by AAB and Fersindo
will be carried out in two stages, through acquisition of a
majority 76.95% stake and subsequently followed by the remaining
23.05% held by its existing shareholders.
total purchasing consideration for 100% interest in AFI is US$1
million (approximately RM3.2 million).
The acquisition is expected
to complete by Q2 2013 and is subject to regulatory
approvals in Indonesia.
This new acquisition will complement AirAsia’s
existing Indonesian operations, IAA, which has successfully
captured strong market share in Indonesia’s international airline
traffic, with an extensive and well-established domestic route
network throughout the Indonesian archipelago.
The Batavia Air
acquisition provides greater domestic connectivity and an
extensive feeder network into IAA’s existing hubs in Jakarta,
Bandung, Denpasar, Medan and Surabaya.
Upon the successful
acquisition, Batavia Air and IAA will fly more than 14 million
customers serving 42 Indonesian and 12 international destinations.
The addition of Batavia Air will provide AirAsia immediate access
to an enlarged fleet of aircraft, experienced pilots and flight
crew and increasingly competitive slots at major Indonesian
airports at a time when Indonesia’s travel sector is experiencing
double-digit growth on the back of rapidly growing consumer demand
for air travel.
Following the acquisition the number of
distribution channels in Indonesia will increase ten-fold to over
5000 authorised agents and more than 70 sales outlets. With this
enlarged agency footprint AirAsia will be able to reach even more
customers while complementing its internet based sales.
“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 Tan Sri Dr Tony Fernandes, Group CEO and Director of
Founded in 2002, Batavia Air operates a fleet
of 33 aircraft serving 41 domestic routes and recently
expanded its route network to international destinations such as
Singapore, Jeddah, Riyadh, Kuching, Dili and Guangzhou. A
certified flight school, simulator training centre and aircraft
maintenance facilities also support Batavia Air’s operations.
“I am proud to have built Batavia Air into a
leading Indonesian airline from its humble beginnings. Recent
developments in the airline industry have made me recognise that
Batavia Air requires greater scale in order to compete and grow
further, and I am so pleased that AirAsia will now take Batavia
Air to even greater heights,” said Bapak Yudiawan Tansari, Batavia
“We are impressed with Batavia Air’s
achievements over the past 10 years and will continue to build on
Bapak Yudiawan’s legacy. We are excited with the potential
synergies this acquisition will bring to AirAsia Group and see
this as a natural extension of the success we have achieved with
IAA . Indonesian air travelers can all look forward to even more
affordable fares soon,” added Tan’ Sri Dr Tony Fernandes.
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