Tata’s Air India proposes acquisition of AirAsia India as part of consolidation move – News
The company also operates the full-service airline Vistara under a joint venture with Singapore Airlines.
Air India plans to acquire no-frills carrier AirAsia India and has sought approval from the Competition Commission for the proposed deal.
AirAsia India is majority owned by Tata Sons Private Ltd with an 83.67% stake and the remaining stake is owned by AirAsia Investment Ltd (AAIL), part of the Malaysian AirAsia Group.
Full-service carrier Air India and its low-cost subsidiary Air India Express were acquired by Talace Private Limited, a wholly owned subsidiary of Tata Sons Private Ltd, last year.
Additionally, Tatas operates the full-service airline Vistara under a joint venture with Singapore Airlines.
The latest move is likely part of the sprawling group’s efforts to shore up its air operations.
“The proposed combination relates to the acquisition of the entire share capital of AirAsia (India) Private Limited (Air Asia India/Target), by Air India Ltd (AIL), an indirect wholly-owned subsidiary of Tata Sons Private Limited” , notice filed with the Competition Commission of India (CCI).
Transactions above a certain threshold require the approval of the CCI, which works to promote competition and combat anti-competitive practices in the market.
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AirAsia India, which started its flights in June 2014, offers scheduled passenger air transport, air cargo and charter services in the country. It has no international operations.
According to the notice, the proposed combination will not result in any change to the competitive landscape or material adverse effect on competition in India, however the relevant markets are defined.
Tata took over Air India and Air India Express in January this year. In October 2021, Tata became the winning bidder for Air India’s loss. He came up with a bid of Rs 18,000 crore, comprising a cash payment of Rs 2,700 crore and the assumption of the carrier’s debt worth Rs 15,300 crore.
Tatas took over Air India and Air India Express in January this year. In October 2021, the group became the winning bidder for the loss of Air India. He offered an offer of 180 billion rupees, including a cash payment of 27 billion rupees and the assumption of the carrier’s debt worth 153 billion rupees.