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AirAsia is Big Ballin' and Shotcallin' in Indonesia

Where: Indonesia
August 1, 2012 at 10:06 AM | by | ()

It isn't often we see airline balance sheets so much in the black that they can acquire entire other airlines at the drop of a hat. Except that's exactly how things played out for AirAsia last week when it went to the ATM and bought its competitor, Batavia Air.

What the Kuala Lumpur-based AirAsia did was fork over $80 million cash for the Jakarta-based Batavia. $80 million. In big ballin' bills. Yep, no interest rates, no late payment fees...cash.

Sometime in 2013, Batavia ownership will go from about 80% AirAsia-owned to fully controlled by Asia's largest LCC. Since the combined airline will control more than 50% of flights domestically, the government has stepped in the investigate if this is legal and fair for everyone.

We can only imagine how dominant AirAsia will be in the region is this happens and it opens up the possibility of seeing more beaches sponsored by the airline. Even the airline's CEO wants to keep an eye on Indonesia; he has made plans to move there during the expansion.

[Photo: Air Asia on Facebook]

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