Tata Sons to wholly own AirAsia India
The holding company for Capital A’s airline group, AirAsia Aviation Group Limited (AAAGL), announced on Wednesday that it had sold its remaining interest in the airline’s India operations to Air India, a subsidiary of Tata Sons Private Limited, for around $19 million. AirAsia Investment Ltd. (AAIL), a subsidiary of Malaysia’s AirAsia Group, owned the remaining stake in AirAsia India until recently. Tata Sons previously owned 83.67 percent of the company.
Tata Sons owned 51% of the company when it was listed as a low-cost carrier in 2014; AirAsia Berhad held the remaining 49%. The joint business had legal difficulties about ownership and effective control.
The business declared in a statement that “all normal consents and regulatory permissions have been obtained. Gross profits of Rs 1,556,487,800, or $18.83 million, are anticipated for AAAGL. Due to Capital A’s marking of the final 16.33% of AAI to its fair value, there will be no gain or loss on the disposal.
Given its robust network and large presence in the region, AirAsia Aviation Group has stated that as it resumes operations following the epidemic, it is reexamining its strategic objectives to focus on Asean.
“AirAsia has established a strong business in India, one of the largest civil aviation markets in the world, when we first started operating there in 2014. Working with India’s premier Tata Group has been a terrific experience for us “said Bo Lingam, Group CEO of AirAsia Aviation Group.
With a total market share of 5.7%, Air Asia India was the fifth-largest airline in India. With the acquisition, the company would control a combined 15.7% of the domestic passenger market in the nation.
Since January 2022, AirAsia has carried more than 23 million passengers on more than 171,000 flights. Pre-pandemic, AirAsia India operated flights to 13 locations, including, among others, Bengaluru (BLR), Kolkata (CCU), Hyderabad (HYD), New Delhi (DEL), and Tiruchirappalli (TRZ).