AirAsia, the region’s biggest budget carrier, is set to buy control of Indonesia’s Batavia Air as it moves to boost its business in the country, which has the largest population in Southeast Asia.
Audrey Progastama Petriny, the communication manager of Malaysia-based AirAsia, said AirAsia and Batavia Air would sign the acquisition deal in Jakarta today.
“This is serious. Friends in media are all invited to cover the signing of the agreement,” she said in a text message.
The signing is scheduled to take place on the eighth floor of the Ritz-Carlton Jakarta, Pacific Place, Audrey said without providing any further details, including the value of the deal.
Dharmadi, the president director of Indonesia AirAsia, will announce the details of the deal today, Audrey said.
Yudiawan Tansari, the owner of Batavia Air, confirmed that AirAsia was buying control of his airline.
“This is a purely business to business transaction,” he said in a text message.
Yudiawan, though, said the acquisition would go through several steps. “The first step will the signing,” he said, declining to elaborate on the other steps.
Batavia Air currently has 33 aircraft in its fleet, consisting of 15 Boeing B737-300s, nine Boeing B737-400s, one Boeing B737-500s, one Airbus A321, five Airbus A320s and two Airbus 330s. Batavia Air owns 18 of the planes, while the remainder are leased by the carrier.
AirAsia has grown rapidly since former record industry executive Tony Fernandes bought the failing airline in 2001.