Malaysian low cost airline AirAsia Bhd is set to buy Indonesian low cost carrier Batavia Air as it aims to expand in the Southeast Asia’s biggest economy, an AirAsia executive at its Indonesian unit said on Thursday.

The move will likely lead to heightened competition among low cost carriers in Indonesia, including the nation’s biggest low cost carrier, Lion Air, a unit of flag carrier Garuda Citilink, and Mandala Air, controlled by private equity Saratoga Capital.

Communication Manager Indonesia AirAsia Audrey Progastama Petriny said the signing ceremony and press conference for the plan would be held later on Thursday in Jakarta.

Batavia Air confirmed the plan but declined to comment about details.

Source: Reuters