Tata Group Owned Air India To Acquire 100% Stake In AirAsia India

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

Further, he said, the pandemic has allowed it to re-examine the priorities and

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.