Expedia ups AirAsia venture ownership

Expedia ups AirAsia venture ownership

Expedia has announced that it has entered into an agreement with AirAsia Berhad to purchase an additional 25% equity interest of AAE Travel Pte. Ltd, according to eTN.

This joint venture formed between the two companies in 2011, will be purchased for cash consideration of $86.3 million. This investment will increase Expedia’s total ownership in the joint venture to 75%, writes eTN.

“Asia continues to be a fast-paced, growing market, and partnering with a powerful brand like AirAsia has been instrumental in driving the expansion of our business in the region,” Expedia’s president and CEO Dara Khosrowshahi said.

“We continue to value and look forward to a great ongoing relationship with them as we bring our world-class technology and supply to travelers across Asia.”

AirAsia’s group CEO Tony Fernandes was also quoted by eTN, saying the partnership with Expedia continues to be a great success for both companies.

“We are excited to continue the close relationship between Expedia and AirAsia to deliver unrivaled travel experiences for Asian consumers,” he said.

The transaction is expected to close in the first half of 2015, at which point Expedia expects to include the AirAsia-Expedia Joint Venture financial results in Expedia’s consolidated financial statements.

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