Expedia Increases Ownership in AirAsia-Expedia Joint Venture
New Delhi, February 17,2015 – Expedia, Inc. (NASDAQ: EXPE) announced today that it has entered into an agreement with AirAsiaBerhad to purchase an additional 25% equity interest of AAE Travel Pte. Ltd., the joint venture formed between the two companies in 2011, for cash consideration of $86.3 million. This investment will increase Expedia’s total ownership in the joint venture to 75%.
“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,” said Dara Khosrowshahi, President and Chief Executive Officer, Expedia, Inc. “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.”
”Our partnership with Expedia has been and continues to be a terrific success for both companies,” said Tony Fernandes, Group CEO of AirAsia. “We are excited to continue the close relationship between Expedia and AirAsia to deliver unrivaled travel experiences for Asian consumers.”
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.
About Expedia, Inc.
Expedia, Inc. (NASDAQ: EXPE) is one of the world’s largest travel companies, with an extensive brand portfolio that includes leading online travel brands, such as:
- Expedia.com®, the world’s largest full service online travel agency with localized sites in 31 countries
- Hotels.com®, the hotel specialist with localized sites in more than 60 countries
- Hotwire®, a leading discount travel site that offers opaque deals in 12 countries throughout North America, Europe and Asia
- Travelocity®, a pioneer in online travel and a leading online travel agency in the US and Canada
- Egencia®, the world's fifth largest corporate travel management company
- eLong™, a leading mobile and online travel service provider in China
- Venere.com™, an online hotel reservation specialist in Europe
- trivago®, a leading online hotel metasearch company with sites in 49 countries
- Wotif Group, a leading operator of travel brands in the Asia-Pacific region, including Wotif.com®, lastminute.com.au®, travel.com.au, Asia Web Direct®, LateStays.com, GoDo.com.au and Arnold Travel Technology
- Expedia Local Expert®, a provider of online and in-market concierge services, activities, experiences and ground transportation in hundreds of destinations worldwide
- Classic Vacations®, a top luxury travel specialist
- Expedia® CruiseShipCenters®, a provider of exceptional value and expert advice for travelers booking cruises and vacations through its network of 180 franchise locations across North America
- CarRentals.com™, the premier car rental booking company on the web
The company delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers the opportunity to reach a highly valuable audience of in-market consumers through Expedia® Media Solutions. Expedia also powers bookings for some of the world’s leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia® Affiliate Network. For corporate and industry news and views, visit us at www.expediainc.comor follow us on Twitter @expediainc.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally can be identified by phrases such as Expedia, AirAsia or management of either company “will,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe the proposed transaction, including its financial and operational impact, and other statements of management’s beliefs, intentions or goals also are forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the combined companies or the price of Expedia or AirAsia stock. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the parties’ control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction; and the other risks and important factors contained and identified in Expedia’s filings with the Securities and Exchange Commission (the "SEC"), such as Expedia’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Neither Expedia nor AirAsia undertakes any obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.
AirAsiaExpedia is the joint venture company between the world's leading online travel company, Expedia Inc. and the world's best low cost airline, AirAsia. Headquartered in Singapore, AirAsiaExpedia oversees both Expedia and AirAsiaGo businesses across Asia Pacific.
Expedia is one of the world’s largest online travel companies. It prides itself in helping travelers plan and book their travel by providing a personalized service, the latest technology, as well as a wide selection of over 365,000 hotels and 400 airlines. Every local website offers holiday packages, cheap flights, hotel bookings, car hire and in-destination attraction to suit all travelling needs. In Asia, Expedia operates 11 sites which are Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, Hong Kong, Japan, Korea and India.
AirAsiaGo.com has established itself as the leading one-stop online travel portal which offerstravellersa complete range ofbest value flights, hotels and holiday packages. With the consistent development of its website technology over the years, AirAsiaGo.com provides customers with access to the mostpersonalizedand efficient booking technology available for 365,000 hotels across Asia.
With AirAsia’s complete flight inventory available on the site, now everyone can experience an affordable vacation with rooms and travel services to meet every budget. Comprising of 22 localized websites, 30 million unique website visitors a month, an email database of nine million and a social media database of 5 million overall, AirAsiaGo.com places global destinations at the fingertips of the tech-savvytraveller.
Currently, AirAsiaGo.com has footprints covering 14 countries in the Asia Pacific including Malaysia, Thailand, Indonesia, China, Singapore, Hong Kong, Taiwan, Korea, Japan, Australia, India, Philippines, Brunei and Indochina. In 2014, the new and improved website also launched its mobile web version, providing a seamless user-friendly experience fortravellerson-the-go. Interactive maps are also implemented in the website to enable users to easily discover the best hotels to suit every budget and location.
For more information, please contact:
Expedia, Inc. Investor Relations
Expedia, Inc. Communications
Swati Guwalani/ Aekta Vijay
+91 9873220117/ +91 8130241977