The Competition Commission of India (CCI) has approved the acquisition of entire shareholding in Air Asia India by Air India.
The proposed combination envisages the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India) by Air India Ltd. (AIL), an indirect wholly owned subsidiary of Tata Sons Private Limited (TSPL).
With the decision, Malaysia's AirAsia will be leaving the airline business in India after operating in the country for around nine years.
Air Asia India is a joint venture between TSPL and Air Asia Investment Limited (AAIL) with TSPL presently holding 83.67 per cent and AAIL holding 16.33 per cent of the shareholding.
Air Asia India operates under the brand name “AirAsia”, and is engaged in the business of providing domestic scheduled air passenger transport service, air cargo transport services, and charter flight services in India.
AirAsia India does not provide scheduled air passenger transport services on international routes.
For Rs 139 crore, Air India would purchase AirAsia's 16.3 percent stake in the airline partnership, reports Economic Times.
Earlier on 27 January this year, Tata Sons had purchased Air India from the government through its wholly owned subsidiary Talace in a deal of Rs 18,000 crore in equity and debt.
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