July 26 (Bloomberg) -- AirAsia Bhd., the region’s biggest budget carrier, and a partner will acquire Indonesia’s Batavia Air for $80 million to expand in Southeast Asia’s biggest economy.
AirAsia will buy 49 percent of the closely held airline, while PT Fersindo Nusaperkasa will purchase 51 percent, the companies said in a statement today. The acquisition is expected to be completed by the second quarter of 2013. Fersindo owns 51 percent of AirAsia’s Indonesian venture.
The deal will boost AirAsia’s Indonesian operations to more than 14 million customers a year, across 42 domestic and 12 international destinations, according to the statement. PT Garuda Indonesia, the nation’s biggest listed carrier, and other airlines are also expanding as they seek to benefit from the nation’s rising travel demand.
AirAsia fell 0.3 percent to 3.73 ringgit at close of trading in Kuala Lumpur. The stock has dropped 1 percent this year, compared with a 6 percent gain for the benchmark FTSE Bursa Malaysia KLCI Index.
Founded in 2002, Batavia Air operates services on 41 domestic routes and has a fleet of 33 aircraft. The carrier also recently added overseas destinations such as Singapore, Jeddah, Riyadh and Guangzhou, according to the statement.
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