AirAsia Accelerates Indonesian Expansion Plans
AirAsia and PT Fersindo Nusaperkasa acquire Batavia Air
Thursday, 26 July 2012
- Jakarta, Indonesia: AirAsia Berhad (“AAB”) today announced
that it has through its fully owned subsidiary AirAsia Investment Ltd
entered into a Conditional Share Sale Agreement ("CSSA") together with
its partner PT Fersindo Nusaperkasa (“Fersindo”) to acquire PT Metro
Batavia (“Metro Batavia”), which operates the
Indonesian airline, Batavia Air, and Aero Flyer Institute (“AFI”), an
aviation training school (together “Metro Batavia Group”). The agreement
was signed today between AAB, Fersindo and Metro Batavia at a signing
ceremony in Jakarta.
In
accordance with Indonesian civil aviation ownership regulations, 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 USD80 million (equivalent to
approximately RM253 million) and will be settled
in cash. The 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. Correspondingly,
the total purchasing consideration for 100% interest in AFI is USD1
million (approximately RM3.2 million). The acquisition is expected to
complete by 2nd quarter 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 our 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 AAB.
Founded
in 2002, Batavia Air has earned its reputation as a leading domestic
airline with a strong safety track record throughout its operating
history. Operating a fleet of 33 aircraft, Batavia has consistently
held significant domestic market share through serving 41 domestic
routes and has 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 Air’s founder.
“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,” remarked Tan’ Sri Dr Tony
Fernandes.
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