Regional Round-Up
AirAsia dumps Batavia deal
November 1st 2012
AirAsia’s $80 million bid for a 49% stake in Indonesia’s Batavia Air may be off, but airline chief, Tony Fernandes, is pushing ahead with an initial public offering (IPO) of its Indonesian subsidiary, AirAsia Indonesia, with plans to triple its fleet size. Read More »
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| AirAsia: set its mind on other joint ventures |
AirAsia had announced its intention to buy into Batavia in July. “The plans were set, but we thought we could accelerate them with the acquisition [of Batavia]. In hindsight we think management time, the integration, the potential earnings fallout and the huge amount of cash required to turn around Batavia would have been too dilutive,” said Fernandes.
“Our aggressive focus in Indonesia remains and we will push ahead with our Indonesian IPO plans while maintaining close co-operation with Batavia Air.”
Fernandes indicated he won’t be looking to invest in another Indonesian carrier. “We already have our mind set on other things in Asia, potentially setting up joint ventures in Korea, Myanmar and India,” he said.
