The acquisition of AirAsia India by Air India has been approved by the Competition Commission of India (CCI). It is based on a request to the fair trade regulator, in which Air India proposed purchasing the low-cost carrier AirAsia India.
As a result of the decision, Malaysia’s AirAsia will exit the airline business nine years after entering India with high hopes.
Air India will buy AirAsia’s 16.3 percent stake in the airline alliance for Rs 139 crore.
Tata Sons holds 83.7 percent of AirAsia India's remaining equity. This will also be purchased by Air India. Tata Sons bought Air India for Rs 18,000 crore in equity and debt on January 27 this year through its fully owned subsidiary Talace.
Tata Sons’ proposal to the CCI is the first stage in integrating its aviation operations, which includes low-cost carrier Air India Express.
According to the CCI proposal, Air India’s proposed acquisition of AirAsia India “would not result in any change in the competitive environment or produce any noticeable adverse effect on competition in India.”
Stay Tuned with Aviation a2z!
Join Our Telegram group for Latest Aviation Updates :- https://t.me/aviationa2z