Air Asia offloads remaining 16.33 pc stake in India operations to Tata-owned Air India
Malaysia-based AirAsia Aviation Group has sold its remaining 16.33 percent equity shares in Air Asia (India) to Air India, which is now owned by the Tata Group, media reports said.
With the stake sale, the company expects to receive Rs 1.56 billion and it would be a no-loss or gain transaction, Air Asia said, ET reported.
Air Asia intends to sharpen its focus on the ASEAN countries after being hit by the Covid-19 pandemic.
There is a possibility that Air India could merge the low-cost carrier with Air India Express.
AirAsia India was a joint venture between Tata Sons and Air Asia Investment Ltd. Tata Sons had an 83.67 percent stake and the latter owned a 16.33 percent shareholding.
In June, the Competition Commission of India approved the proposed acquisition of the entire shareholding of AirAsia India by Air 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", stated the report.
"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," he said, it added.