Asia’s largest low-cost carrier, AirAsia Bhd, this week announced plans to acquire Indonesia’s Batavia Air to expand in Southeast Asia’s biggest economy. (Reuters Photo/Beawiharta)
I think Lion’s concept and structure of the company will not be the same or in the interest of Airasia and they compete in different market conditions. Lion won’t be needing a suitor for next few years. Airasia might look into few other indonesia low cost carriers but would be hard to bite them since very profitable.
Fersindo isn’t foreign, so the acquisition should be legal. But I guess that wouldn’t stop some Govt. bureaucrat from coming up with another “law” to limit foreign participation. But anti trust laws may play a role should Air Asia continue to purchase another airline such as Lion Air, who must be thinking
would be ok since airasia is aiming only up to 20% of market share in Indonesia airline market in next few years. won’t be hitting the anti monopoly regulations.
The Transportation Ministry says it has not officially been informed of the acquisition of Indonesian Batavia Air by Malaysia’s AirAsia.
“That means it is not yet certain if the ministry will approve the acquisition,” Herry Bhakti, the ministry’s air transportation director general, said here on Friday.
The ministry has yet to determine if the acquisition is in line with the prevailing regulations, such as those concerning the division of Batavia Air’s shares, Herry said.
An Indonesian regulation prevents foreign investors from holding a majority stake in an airline operating in the country.
AirAsia Berhad and Fersindo Nusaperkasa, which are partners in Indonesia AirAsia, were reported on Thursday to have acquired Batavia Air at a price of $80 million.
“After months of negotiations, finally we came to an agreement to develop a relationship between AirAsia and Batavia Air,” AirAsia Berhad CEO Tony Fernandes told reporters in Jakarta.
Fernandes expressed satisfaction with the deal, citing Batavia Air’s strong market position in Indonesia. Through the “perfect marriage,” AirAsia is set to grab a larger share of the Indonesian market, he said.
AirAsia bought over Batavia Air Indonesia in HERE.
Thank you John for the alert.