AirAsia Group considers merging Indonesia, Thai subsidiaries

Malaysia-based AirAsia Group is looking to merge two of its regional subsidiaries—Thai AirAsia and Indonesia AirAsia—that could potentially use Thailand as the ASEAN regional headquarters for the group. An Indonesia AirAsia spokesperson would not reveal details of a potential merger, but said a study was being conducted into a potential merger of the two subsidiaries. “We will update the information later, but at the moment I cannot give a statement as [the project] is still under review,” he said. Indonesia AirAsia was listed in late 2015 as one of several carriers that contravened Indonesian Transportation Ministry (ITM) equity requirements, leading to reports of a potential merger with long-haul partner Indonesia AirAsia X to satisfy local regulations. Initial indications of the potential Thai merger came from Thailand’s Deputy Prime Minister Somkid Jatusripitak after a meeting with Thai Prime Minister Prayut Chan-o-cha. Jatusripitak indicated that a merged AirAsia subsidiary could also move its listing to the Thai Stock Exchange. “They will likely merge … subsidiaries in Indonesia and Thailand, but could [still] continue to use a dual listing in both Malaysia and Thailand,” he added.<br/>