AirAsia Sells Its Remaining Stake In India Operations To Tata-Led Air India
AirAsia Aviation Group Limited sold its remaining stake in AirAsia (India) Private Limited, its India operations, to Tata group-led Air India, according to a regulatory filing.
The agreement comes as AirAsia makes its strongest-ever comeback to the skies following the pandemic, which allowed the airline to review its strategic goals and narrow its focus on ASEAN, given its robust network and large presence in the region.
"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 Bo Lingam, Group Chief Executive Officer of AirAsia Aviation 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," added Mr Lingam.Â
The company announced the sale of the remaining 16.33 per cent of AirAsia's equity shares to Air India Limited, a subsidiary of Tata Sons Private Limited, following the announcements made on December 29, 2020, and January 5, 2021, regarding the disposal of 32.67 per cent equity shares in AAI, in a deal worth about $19 million.
Tata Sons acquired Air India through its wholly-owned subsidiary Talace for Rs 18,000 crore in equity and debt in January this year.
Air Asia India was the fifth-largest airline in India, with a total market share of 5.7 per cent and with the takeover by Tata-led Air India, the entity will have a combined 15.7 per cent share of the country's domestic passenger market.
IndiGo remains the biggest airline in the country, with a market share of 56.2 per cent.
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