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AirAsia Seeking to Purchase Batavia Air

Plan by AirAsia Indonesia and Air Asia Berhad (Malaysia) to Purchase Batavia Air Subject to Indonesian Government Approval

Bali News: Indonesia, Malaysia, Air Asia, Batavia Air, Herry Bhakti, AirAsia Berhad, AirAsia Indonesia, Fersindo Nusaperkasa, Dharmadi
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Plans by Malaysia AirAsia to acquire Batavia Air may be sidetracked if the Indonesian Transportation Ministry does not issue its approval for the purchase. Quoted by The Jakarta Globe, the air transportation director Herry Bhakti said: “That means it is not yet certain if the ministry will approve the acquisition.”

Still to be determined is whether or not the proposed acquisition meets Indonesian government regulations of the maximum foreign ownership allowed for an Indonesian air carrier. Currently, foreign shareholdings in an Indonesian airline cannot exceed 49%.

The Malaysia Company AirAsia Berhad and its Indonesian partner AirAsia Indonesia owned by Fersindo Nusaperkasa and AirAsia Berhad are reported to be contemplating the proposed purchase of Batavia Air.

Fersindo’s president director, Dharmadi, is telling the press that AirAsia Indonesia will hold the mandatory 51% share in Batavia Air.

Press reports suggest that Batavia Air will be purchased at a price of US$80 million.

Batavia Air operates 33 aircraft comprised of 15 Boeing B737-300s, nine Boeing B737-400s, one Boeing B737-500s, one Airbus A321, five Airbus A320s and two Airbus 330s. 18 planes of the Batavia Air fleet are owned by the airline with the remaining aircraft on lease.

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