Air India proposes to buy 100 pc stake in Air Asia India
Mumbai: Air India has proposed to buy a 100 percent stake in fellow Tata group-owned Air Asia India with the aim to merge the budget airline with Air India Express, its low-cost entity, to save operational costs.
Air India has approached the Competition Commission of India to seek its approval for the proposed acquisition.
Tata Sons holds almost 84 percent stake in AirAsia India while Malaysia’s AirAsia owns the rest.
According to the ET report, Tata Sons executives have discussed with the senior management of both AirAsia India and Air India matters related to the integration of staff and fleets, including other matters.
External integration specialists, too, have been also roped in for advice on the merger, the report added.
Tata Group also runs Vistara Airlines in partnership with Singapore Airlines where the former holds 51 percent stake.