Tata Group's Air India To Own 100% Stake In AirAsia India
Tata Owned Air India is all set to own a 100% stake in AirAsia India airline. Keep reading to know more.
Air India, which is owned by the Tata Group, has made a proposal to buy the entire airline AirAsia India. The plan by Air India to acquire the whole equity share capital of AirAsia India and merge the two airlines received approval from the Indian Competition Commission earlier in June. Deals above a specific threshold must receive the Indian Competition Commission’s clearance. This is because CCI strives to promote competition and rein in unfair business practices.
Tata Sons Private Ltd currently owns 83.67% of the no-frills airline AirAsia India, and AirAsia Investment Ltd (AAIL), a subsidiary of the AirAsia Group in Malaysia, holds the remaining 16.33% of the company. Air Asia Investment Ltd. and Tata Sons have partnered to create the carrier. The merger, which is anticipated to take place by the end of 2023, aims to create a single low-cost airline for the Air India group. After the merger, the company will adopt the Air India Express name. Air India has also signed agreements to own a 100% interest in AirAsia India.
Group CEO of AirAsia Aviation Group Bo Lingam said that since 2014
When we first commenced operation in India, AirAsia has built a great business in India, which is one of the world's biggest civil aviation markets. We have had a great experience working with India's leading Tata Group. This is not the end of our relationship but the beginning of a new one as we explore new and exciting opportunities to collaborate and enhance our synergies moving forward
Further, he said, the pandemic has allowed it to re-examine the priorities and
We felt that it was best suited for AirAsia to develop an Asean-only business.
India will remain an important market for AirAsia and will continue to be served by our various airlines. We will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the Asean-Indian market in logistics and passenger services to a far greater extent
Tatas won the bidding war for the loss-making airline Air India in October 2021. In addition to making a payment of 2,700 crores, it also agreed to take up the carrier's debt, which was valued at 15,300 crores. This made up its bid of 18,000 crores.
Also Read: AirAsia India-Air India Express Merger Likely By 2023-End, Says Air India
Air India Limited and its wholly-owned subsidiary, Air India Express Limited (AIXL), are mainly involved in the business of providing services such as offering domestic and international scheduled air passenger transport services, air cargo transport services and charter flight services in India. The unification of AirAsia India and Air India Express is anticipated to bring customers, cost, revenue, and operational benefits through wider adoption of each airline's best practices, systems, and routes, as well as the merged entity's greater scale.