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.
Comments ↓
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.
