Tata Sons owns 83.67 per cent in the no-frills carrier and the remaining 16.33 per cent is owned by AirAsia Investment Ltd., which is also a part of Malaysia's AirAsia Group.
Tata Group will now wholly own AirAsia India via Air India. The AirAsia Aviation Group has sold its remaining stake in AirAsia India to Air India, a company which is now owned by the Tata Group. AirAsia has also reportedly said that there will be no gain or loss on the disposal as it expects to receive Rs 1.56 billion from the sale of the stake.
Malaysia-based AirAsia also reportedly mentioned that it entered into a share purchase agreement to sell the remaining equity shares held in AirAsia India. The airline is also expected to ramp up its focus on Asean countries as COVID-19 pandemic has impacted its business. Since India is an important market, it will be served by its other airlines.
According to a report in the Economic Times, Tata Sons owns 83.67 per cent in the no-frills carrier and the remaining 16.33 per cent is owned by AirAsia Investment Ltd., which is also a part of Malaysia’s AirAsia Group.
The publication also adds that with this ownership, there is a likelihood that Air India may merge the acquired airlines with Air India Express. However, an official confirmation is awaited.
With regards to the stake, in June, the Competition Commission of India (CCI) had given its nod to Air India's proposal to purchase the entire equity share capital of AirAsiaIndia. In this purchase, the Tata Group had a majority stake of 83.67 per cent, as mentioned before.
The ET report quotes Group CEO of AirAsia Aviation Group Bo Lingam saying, “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.”