16-Oct-2012 9:32 AM

AirAsia cancels agreement to buy Batavia Air, on track for Indonesian IPO

AirAsia cancelled (15-Oct-2012) a 26-Jul-2012 conditional agreement to acquire Indonesia’s Batavia Air for USD80 million but said the two companies will collaborate on other aspects of their business including ground handling, distribution and an aviation training joint venture. AirAsia group CEO Tony Fernandes said, “Our aggressive focus in Indonesia remains and we will push our Indonesian IPO plans while still maintaining close co-operation with Batavia Air. The company’s decision was based on a thorough evaluation by many parties into Batavia Air. In our minds, the timing was perhaps not appropriate as it would have induced too many risks and would ultimately be earnings dilutive to our shareholders.” [more - original PR]