Anti-trust regulator Competition Commission of India (CCI) on Tuesday said it has approved the acquisition of the entire shareholding in AirAsia India by Air India, a wholly-owned subsidiary of Tata Sons.
“The proposed combination relates to the acquisition of the entire equity share capital of AirAsia India Private Limited by Air India Ltd- an indirect wholly-owned subsidiary of Tata Sons Private Limited (TSPL). At present, TSPL holds 83.67 percent of the equity share capital of Air Asia India,” stated the filed notice with CCI.
The two combined entities will have a 15.7 percent share of India’s domestic passenger market. Air India Express – a subsidiary of Air India doesn’t operate in the domestic market and flies only between India and Gulf routes.
Tatas raised their stake in AirAsia India to 83.67 percent in December 2020 and are likely to complete the acquisition of the remaining 16 percent stake from Malaysian airline group AirAsia Berhad.
CCI approves acquisition of entire shareholding in Air Asia India by Air India, a wholly-owned subsidiary of Tata Sons pic.twitter.com/TqUE8kFiYC
— CCI (@CCI_India) June 14, 2022
Deals beyond a certain threshold require competition watchdog CCI’s approval. AirAsia India, which started flying in June 2014, offers scheduled air passenger transport, air cargo transport, and charter flight services in the country.
“AIL, along with its wholly-owned subsidiary, Air India Express Limited (AIXL), is primarily engaged in the business of providing (a) domestic scheduled air passenger transport service, (b) international scheduled air passenger transport service, (c) air cargo transport services in India, and (d) charter flight services in India,” the CCI said in the statement.
About Air Asia
AirAsia India, which started flying in June 2014, offers scheduled air passenger transport, air cargo transport, and charter flight services in the country. It does not have international operations.
In a tweet on Tuesday, the Competition Commission of India said it has approved the acquisition of the entire shareholding in Air Asia India by Air India, a wholly-owned subsidiary of Tata Sons.
Full-service carrier Air India and its low-cost subsidiary Air India Express were acquired by Palace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year.
Besides, Tatas operate the full-service airline Vistara in a joint venture with Singapore Airlines. Tatas took over Air India and Air India Express in January this year.
In October 2021, Tatas emerged as the winning bidder for loss-making Air India. It offered a bid of Rs 18,000 crore, comprising cash payment of Rs 2,700 crore and taking over the carrier’s debt worth Rs 15,300 crore.
