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AirAsia not to purchase Batavia Air now, scraps $80 million deal

Asia’s largest budget carrier AirAsia recently announced it has decided to drop its decision to purchase Batavia Air now. The airline’s decision has out the expansion plans of AirAsia flights into Indonesia on hold.

Tony Fernandes, AirAsia Group CEO, disclosed that the airline has decided to scrap a $80 million deal for purchasing Indonesia’s Batavia Air. He said that the airline’s move to buy Batavia Air was full of too many risks.

Malaysia-based AirAsia had earlier announced in July this year that it was planning to purchase Batavia Air aimed at expanding its flight network into Indonesia.

Tony said that this would have been AirAsia’s first major acquisition if the airline had succeeded in buying Batavia Air.

The acquisition of Batavia Air would also have increased competition in Indonesia among low-cost carriers like national flag carrier Garuda Indonesia’s Citilink unit and Lion Air.
 
Tony said that AirAsia would continue to maintain close cooperation with Batavia Air and would keep on aggressively focusing on Indonesia.