Saturday, Apr 18, 2015Saturday, Apr 18, 2015
Business
 

AirAsia drops plan to buy Indonesia's Tigerair Mandala

Published on Jun 13, 2014 1:06 PM
 
Malaysia's AirAsia has dropped a plan to acquire Indonesian low-cost carrier Tigerair Mandala and will instead grow its business organically in Southeast Asia's biggest economy with planned investment of US$300 million (S$375 million) a year. -- PHOTO: ST FILE

JAKARTA (Reuters) - Malaysia's AirAsia has dropped a plan to acquire Indonesian low-cost carrier Tigerair Mandala and will instead grow its business organically in Southeast Asia's biggest economy with planned investment of US$300 million (S$375 million) a year.

"We would like to confirm that we evaluated to purchase Mandala. And after a long search have decided not to pursue this transaction," AirAsia Group Chief Executive Tony Fernandes said in an email to Reuters on Friday.

The shelving of the planned acquisition follows a similar pullout from an Indonesian carrier. Citilink has ended talks to buy Mandala, two sources familiar with the discussions told Reuters on Thursday.

Singapore-based Tiger Airways Holdings is looking to sell its 35.8 per cent in Mandala to cut its overseas exposure and focus on returning its flagship Tigerair business to profitability.

 
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!

Videos