AirAsia sells remaining equity shares in AirAsia India to Air India | Mint
Active Stocks
Wed Feb 28 2024 15:59:21
  1. Tata Motors share price
  2. 957.75 -0.52%
  1. Tata Steel share price
  2. 140.75 -2.36%
  1. HDFC Bank share price
  2. 1,408.15 -0.87%
  1. Power Grid Corporation Of India share price
  2. 279.55 -4.43%
  1. ITC share price
  2. 408.60 -0.62%
Business News/ Companies / News/  AirAsia sells remaining equity shares in AirAsia India to Air India
BackBack

AirAsia sells remaining equity shares in AirAsia India to Air India

The latest agreement comes as AirAsia returns to the skies stronger than ever since the Covid-19 pandemic

An AirAsia passenger plane takes for Malaysia for the first time since the route was reopened after being suspended for almost three years due to the Covid-19 pandemic, at Sultan Iskandar Muda International Airport in Blang Bintang, Aceh province on October 3, 2022. (AFP)Premium
An AirAsia passenger plane takes for Malaysia for the first time since the route was reopened after being suspended for almost three years due to the Covid-19 pandemic, at Sultan Iskandar Muda International Airport in Blang Bintang, Aceh province on October 3, 2022. (AFP)

AirAsia Aviation Group Limited, the holding company of Capital A's airline group, on Wednesday announced that it has entered into a share purchase agreement to sell the remaining equity shares held in low cost carrier AirAsia (India) to Tata Group-owned Air India.

The latest agreement comes as AirAsia returns to the skies stronger than ever since the Covid-19 pandemic, which allowed the airline to re-examine its strategic objectives, to focus on Asean given its strong network and significant presence in the region, the company said in a statement. 

Till now, AirAsia has flown more than 171,000 flights since January this year, carrying over 23 million passengers across the Group.

CCI on Air India's acquisition of AirAsia India

The Competition Commission of India (CCI) had in June approved Air India's proposal to buy the entire equity share capital of AirAsia India, in which Tata has a majority stake, to merge into a single airline.

The autos-to-steel conglomerate had 83.67% stake in AirAsia India and the remaining stake is with AirAsia Investment Ltd (AAIL), which is part of Malaysia's AirAsia Group.

“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 in the world. We have had a great experience working with India’s leading Tata Group," said Group CEO of AirAsia Aviation Group Bo Lingam.

The Group CEO further said, “Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines– in Malaysia, Thailand, Indonesia and the Philippines– with a much loved brand and presence."

"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," he added.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 02 Nov 2022, 04:20 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App