Indon MOT yet to give approval for acquisition of Batavia Air by AirAsia

Tony Fernandes & Mr Yudiwan Tansai, President of Batavia Air, Indonesia after the signing ceremony for the sale of Batavia Air, Indonesia

Indonesian Govt Says It Has Not Yet Approved AirAsia’s Acquisition of Batavia Air
July 27, 2012

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.

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13 thoughts on “Indon MOT yet to give approval for acquisition of Batavia Air by AirAsia

  1. Hassan

    This is normal. Publicity/hype first then …

    As usual acquisition get wide coverage in the Star but not a word about no approval for the acquisition has been reported by Star. Most probably the Editor was not aware of such adverse news! ka! KA! KA!

    Reply
    1. IT.Sheiss

      I don’t buy The Star or any newspapers regularly for that matter but it would be worthwhile noting how much AirAsia advertises in The Star print and/or online editions. Also whether it is available on board AirAsia flights.

      Advertisers are one of the biggest killers of media freedom, since a media will most probably not want to upset its advertisers, especially now when print circulation is dropping and newspapers are facing tough times with earning revenue.

      Despite all the rhetoric about the media being the Fourth Estate, yada, yada, yada, the bottom line is that journalism is constrained by the hands which feed it and woe betide media which bites that hand.

      Reply
      1. STAR and AirAsia

        the pariah advertise so much in the Star that Wong Chun Wai invited him into the board of the STAR.

        See how ex UMNO President M.. help to become billiona9ir and rich..hehe

        Strange no one in the blog spheres knows that AirAsia is part of the Star through the pariah…

  2. Gempaq Keling

    Totally agree Hassan. And how many times have we heard about the AAX listing?? Berapa kali postpone da..

    Reply
    1. Ilham Putra

      Dear Gempaq Keling,

      The AAX listing delay is not the Pariah’s fault. It is the fault of MAB and MOT. If you don’t believe me, please ask the former MITI Minister yang dah nyanyuk tu?

      Pariah is Mr perfect, thats why Najib and Nazir trust him.

      Reply
  3. Anonymous

    It is not going to be plain sailing for the pariah in Indonesia. He will definitely not get what he has been getting in Malaysia. For a start he will not get the Indonesia airport authority to allow him to owe airport tax for days let alone for years like what happened in Malaysia during the Slumber Jack days.

    when KLIA2 in operational, just close down LCCT. See what the pariah is going to do. Lets see what the Star can help him to hype out with more stories.

    Reply
  4. Johan Khazanah

    Hassan

    Of course the editor of the Star will never knew anything adverse about AirAsia! They only know how to publish distorted news about it. It has been a long time that the Star has been doing this. Just look at the stories about MAS before the share SUAP. Only the negative stories that MAS is going to collapse and AA was doing very very well. Once day the editor will have to eat his words!

    Reply
  5. Time Traveller

    We all know very well how Indonesia “loves” Malaysia. They called us malingsia, and maling means curi in Indon language. When they claimed we curi their culture, and mistreated their workers, that followed with numerous demonstrasi both in Jakarta and KL, I don’t think it would be smooth sailing for TF in Indonesia. Now, they will claim that we curi their airline pulak. You see, Indonesia cannot see Malaysia lebih than them. See the football match or even the SEA games and how they treated us. Good luck TF. Don’t be surprised if the Indons demo in front of your office in Jakarta.

    Reply
  6. Anti Pariah

    I am sure that the Pariah can solve all the problems in Jakarta like what he had done in Malaysia under when Slumber Jack was the PM. Lets wait and see what he is going to do. padan muka!!!

    Reply
  7. Clueless Idiot

    At last the Star had published about the Batavia. Of course, after pondering about it for a few days. May be it had no choice as it has already published in YB’s blog.

    On another matter, the Clueless AJ is just as blur as before. He is a bit better now because he has not given the pariah more of MAS routes like what he did before>Bandung, Haneda and, of course, Sydney. AJ will tell us that Sydney is not a profitable route like Bandung.

    This clueless fella has big ego but small brain. That is the problem. He has now taken over the position of Nanny Danny where no one in MAS like him. But he will hang on with buta RM250,000 a month!

    Reply
  8. Pak Din

    The Pariah thought that the Slumber Jack and son are controlling Indonesia and he can do what he wants. Unfortunately, there is no Slumber Jack there to comfort the Pariah.

    I bet you the Indon will tell the Pariah to fly kite – “Now Everyone Can Fly A Kite!” Padan muka for the pariah. He deserves it. There are no little Napoleons in Indonesia like we have in Khazanah and MAS.

    Reply

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