<article><a style="color: #000080;" href="http://www.airasia.com/" target="_blank">Indonesia AirAsia</a> will merge with sister company <a style="color: #000080;" href="http://www.airasia.com/" target="_blank">Indonesia AirAsia X</a> to solve issues regarding negative equity, said the <a style="color: #000080;" href="http://www.dephub.go.id/" target="_blank">Indonesian Transportation Ministry</a> in a press conference in Jakarta.</article>

<a style="color: #000080;" href="http://www.airasia.com/" target="_blank">Indonesia AirAsia</a> will merge with sister company <a style="color: #000080;" href="http://www.airasia.com/" target="_blank">Indonesia AirAsia X</a> to solve issues regarding negative equity, said the <a style="color: #000080;" href="http://www.dephub.go.id/" target="_blank">Indonesian Transportation Ministry</a> in a press conference in Jakarta.
An official proposal letter had been submitted last week, and is now being processed by the ministry’s air transportation directorate.
Transportation Ministry’s air transportation director Suprasetyo said the corporate action will result in Indonesia AirAsia X as the surviving entity. However, he declined to disclose further details, including when the merger will take place.
“We are now evaluating the proposed transaction and will give necessary guidance so that the merger will not disturb day-to-day operations,” he said.
Indonesia AirAsia is one of three companies to have reported a negative equity last year, along with <a style="color: #000080;" href="http://www.susiair.com/" target="_blank">PT Asi Pudjiastuti</a> and <a href="http://www.asialinkcargo.co.id/" target="_blank">PT AsiaLink Cargo.</a> The Transportation Ministry has said that it is important for airlines to maintain positive equity in order to safeguard standard safety levels.
In February 2015, the ministry issued a ministerial regulation obliging domestic airlines to submit audited annual financial statements by 30 April. By receiving these reports, the ministry can monitor the airlines’ financial conditions and ensure that they operate in accordance with prevailing safety and security standards.
The measure was taken after the fatal Indonesia AirAsia’s flight QZ 8591 crash in December 2014, that killed 162 people on board in the Java Sea.
Merge with Thai AirAsia?
Previously, reports had been circulating that parent company AirAsia Group was looking to merge Indonesia AirAsia with Thai AirAsia.
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.
Earlier this year, the deputy PM proposed THAI to acquire a 20-per-cent stake in Thai AirAsia. However, the deal did not materialise.
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Indonesia AirAsia to Merge with Indonesia AirAsia X

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