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Adam Air on the Eve of an Expansion?

Visit by Top Qantas Executives to Adam Air in Jakarta Fuels Rumors that Qantas May be Shopping for a Share in the Indonesian Budget Carrier.

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Anticipating the planned deregulation of cargo and passenger rules among ASEAN member airlines, Australia's Qantas is reportedly eyeing a share in Indonesia's Adam Air.

Owned by PT Adam Skyconnection Airlines, the budget carriers President Director Adam Suherman confirmed that both Qantas's CEO Geoff Dixon and CFO Peter Gregg recently paid an extended call on Adam Air during a visit to the Indonesian capital of Jakarta.

While Qantas is remaining essentially mum on its plans for the Indonesian carrier, Suherman told the press that Qantas has expressed an interest in a 30% share in the airline while Adam Air is only prepared to sell 20% to the overseas carrier. Indonesian law currently limits to 49% the foreign ownership share in Indonesian-owned carriers.

Fast growing and ambitious, Adam Air currently operates 20 aircraft flying to 39 destinations in the region and have annoounced plans to increase their armada to 40 planes by the end of 2006.

Various regional business press reports have also suggested that Adam Air may sell shares on the Singapore stock exchange in 2008.

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