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Indonesian regulator approves AirAsia's acquisition of Batavia Air
Publication Date : 31-08-2012
The Indonesian Transportation Ministry has given its approval to PT Metro Batavia to sell its stake in Batavia Air to PT Fersindo Nusaperkasa, the owner of 51 per cent of Indonesia AirAsia, and Malaysia-based AirAsia Berhad.
"We agree that Batavia Air can sell its shares to Fersindo and AirAsia Berhad, and the process should be in line with ownership regulations in Indonesia, which require at least 51 per cent Indonesian ownership," the ministry's air transportation director general Herry Bhakti Gumay said.
The airline would need additional permits if it wanted to operate as a budget carrier, Gumay said.
Separately, Batavia Air commercial director Sukirno Sukarna said that the company received its permit from the ministry on Wednesday.
"We are going to further communicate this to Fersindo and AirAsia Berhad," Sukarna told The Jakarta Post over the telephone.
After the due diligence, the firms would acquire 76.95 per cent of Batavia Air's shares next month. Sukarna said.
"If everything goes smoothly as planned, the first phase of the acquisition will take place in the middle of September," Sukarna added.
Dharmadi, who is the president director of both Fersind and Indonesia AirAsia, said in a statement that the acquisition would be complete by March.