AirAsia buys Irish leasing units; Citilink Indonesia bid rejected
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Asia Aviation Capital Ltd (AACL), the aircraft leasing unit of AirAsia Group Bhd, has acquired four newly incorporated companies in Ireland. AirAsia said in a stock exchange filing that AACL — its indirect wholly-owned subsidiary — had acquired the entire issued and paid-up share capital of Merah Aviation Asset Holding Two Ltd, Merah Aviation Asset Holding Three Ltd, Merah Aviation Asset Holding Four Ltd, and Merah Aviation Asset Holding Five Ltd.
AirAsia said the four Merah Aviation companies were incorporated under the laws of Ireland on Wednesday for the purpose of owning, leasing and/or financing of aircraft. Each of Merah Aviation has issued and paid-up share capital of US$1 (RM4.09).
In a separate matter, the Jakarta Post reported yesterday that AirAsia Indonesia’s proposal to acquire low-cost carrier (LCC) Citilink Indonesia had been rejected by Garuda Indonesia, quoting Garuda president director Ari Askhara.
Citilink is a subsidiary of Garuda, according to the Jakarta Post report that is based on a report. Ari was quoted as claiming that “Citilink is doing better than AirAsia, even under Garuda’s new management”.
He said there are no internal talks within Garuda and no order from shareholders to sell Citilink. He also said Garuda has not received an official proposal from AirAsia Indonesia to buy Citilink.
Though he conceded that talks had taken place between Garuda and AirAsia, he gave assurance that they were about possible cooperation, not acquisition.
The report came after AirAsia Indonesia president director Dendy Kurniawan said on Monday the company was interested in acquiring Citilink because of the similarities between the two LCCs.
“Both are LCCs. We are strong in international routes, while they (Citilink) are strong domestically. We have also a similar rating of pilots and cabin crew members.
“We are interested. If Citilink’s shareholders welcome our offer, we will thank God. But if not, it is no problem,” Dendy said, adding that both LCCs operate Airbus aircraft.
Questions & Answers
Q.What is the primary purpose of the four new Irish companies acquired by AirAsia's leasing unit?
What is the primary purpose of the four new Irish companies acquired by AirAsia's leasing unit?
The four Merah Aviation companies were incorporated to own, lease, and/or finance aircraft. Each company has a small initial paid-up share capital of US$1.
Q.Why did Garuda Indonesia reject AirAsia Indonesia's proposal to acquire Citilink Indonesia?
Why did Garuda Indonesia reject AirAsia Indonesia's proposal to acquire Citilink Indonesia?
Garuda's president director claimed Citilink was performing better than AirAsia, even under new management. He also stated there were no internal talks or shareholder orders to sell Citilink.
Q.What reasons did AirAsia Indonesia give for its interest in acquiring Citilink Indonesia?
What reasons did AirAsia Indonesia give for its interest in acquiring Citilink Indonesia?
AirAsia Indonesia saw similarities between the two low-cost carriers, such as both operating Airbus aircraft. They noted AirAsia's strength in international routes and Citilink's in domestic.
Q.Were there any discussions between Garuda and AirAsia regarding Citilink?
Were there any discussions between Garuda and AirAsia regarding Citilink?
Garuda's president director conceded that talks had taken place. However, he maintained these discussions were about possible cooperation, not an acquisition of Citilink.
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