AirAsia and Expedia strengthen ties

first_imgAirAsia today announced the execution of a Share Purchase Agreement with Expedia, to divest a 25 per cent stake in AAE Travel, the joint venture between Expedia and AirAsia.The agreement is for a consideration of USD$86.3 million and this will increase Expedia’s total ownership of equity in the joint venture to 75per cent.In connection with this transaction, AirAsia has also amended and concurrently executed certain additional agreements with Expedia.AirAsia Group chief executive officer Tony Fernandes, said that AirAsia began the joint venture with Expedia back in 2011 and together have built a fantastic business.“The vision of marrying Expedia, a globally recognized and highly regarded travel agency, with the AirAsia group network has yielded a significant return in just over three years. We remain committed as partners as Expedia continues to develop in this region, and this agreement will simultaneously allow for the AirAsia group to further develop and diversify its distribution network,” Mr Fernandes said.“This is in line with our strategy of early equity investment in adjacent businesses that have strong synergies with AirAsia across the travel value chain. Over the years, AirAsia has also invested in partnerships with Tune Insurance, Asian Aviation Centre of Excellence with CAE, Think Big Digital with Aimia and Tune Money, and we continue to look for additional partnership opportunities,” Mr Fernandes said.Source = ETB Travel News: Lewis Wisemanlast_img

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