KUALA LUMPUR: US-based Expedia Group Inc has acquired the remaining 25 per cent equity interest in AAE Travel Pte Ltd, held by AirAsia Exp Pte Ltd, a wholly-owned subsidiary of AirAsia Group Bhd (AirAsia), for US$60 million (RM240 million) cash.
AAE Travel is a joint-venture formed by AirAsia and Expedia in March 2011, and in which Expedia held 75 per cent equity since 2015.
In a joint statement, AirAsia and Expedia said the amount would be net of AirAsia’s concurrent purchase of the AirAsiaGo.com domain names and related assets from AAE Travel Pte Ltd.
“AirAsia has been a fantastic partner for the past seven years, helping to establish Brand Expedia as a strong and increasingly locally relevant player in the Asia region,” said Expedia Group President and Chief Executive Officer (CEO) Mark Okerstrom.
AirAsiaGo.com, which offers a full suite of travel products including AirAsia flight and hotel packages featuring Expedia’s lodging content, will continue to be powered by Expedia.
Okerstrom said acquiring full ownership of AAE Travel reflected the group’s belief in the immense potential of the over US$485 billion Asian travel market.
Meanwhile, AirAsia Group Chief Executive Officer Tan Sri Tony Fernandes said proceeds from the disposal would be used to develop big unicorn products such as BigPay, Travel 360, Redbox Logistics and Ourshop.
“This first set of joint-ventures has taught us a tremendous amount and shareholders who have seen huge returns from our first round of partnerships haven’t seen anything yet,” he added