History
The airline was established in 2001 and started operations in January 2002. Originally known as Metro Batavia, it started operations with a wet-leased Fokker F28 aircraft from Sempati Air. Batavia Air launched scheduled services from Jakarta to Pontianak in January 2002. The airline is owned by PT Metro Batavia. Since June 2010 the airline has been taken off the list of banned carriers from flying into EU airspace, along with Indonesia AirAsia.
In July 26, 2012, AirAsia and Batavia Air issued a joint statement revealing an intention to proceed with a buy out of the airline by Malaysia's AirAsia Bhdfor $80 million.
The planned buy out was to be in two stages; first, AirAsia was to buy 76.95% shares in a partnership with Fersindo Nusaperkasa, its Indonesian business unit operating Indonesia AirAsia. By 2013, AirAsia was to acquire the remaining 23.05% held by other shareholders.
Indonesia's laws disallow majority ownership by foreign entities in local businesses but AirAsia through its sister company Fersindo Nusaperkasa planned to circumvent that law to develop a further expansion of its foothold in Indonesia's domestic market. The acquisition was anticipated to create controversy with Indonesian authorities at the time as domestic laws in Indonesia do not permit majority ownership in local airline industry by foreign nationals. That controversy did arise within days of the announcement.
At the time of the initial public announcement the Indonesian government had not granted approval for the takeover by AirAsia Berhard and Fersindo Nusaperkasa (Indonesia AirAsia). The share sale agreement signed in July outlined a commitment by AirAsia to buy a 49% stake of Batavia while its local partner, Fersindo Nusaperkasa (Indonesia Air Asia), was to acquire the majority 51%.
By 11 October 2012 the deal between AirAsia Berhard and Fersindo Nusaperkasa (Indonesia AirAsia) and PT Metro Batavia had reversed.
When the cancellation of the planned takeover between Batavia and AirAsia was announce on 11 October 2012 a joint statement was issued announcing a plan to proceed with an alliance encompassing ground handling, distribution and inventory systems in Indonesia. The statement also announced a plan to deliver operational alliances between Batavia and the Air Asia group.
Batavia and Indonesia AirAsia of which AirAsia controls 49% will form a separate joint venture to provide a regional pilot training centre in Indonesia. No details were provided on that new alliance when it was announced in early October 2012.
Read more about this topic: Batavia Air
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