Air India is acquiring AirAsia India
AirAsia India is a joint venture between TSPL and Air India Investment, with the Tatas presently holding 83.67 percent of shared equity.
Competition Commission of India has green flagged the acquisition of AirAsia India by Air India.
The proposed combination visualises the procurement of the entire equity share capital of AirAsia (India) Pvt Ltd via Air India Ltd (AIL), an entirely owned subsidiary of Tata Sons Pvt Ltd (TSPL), a notification given by the fair trade regulator said.
AirAsia India is a joint venture between TSPL and Air India Investment Limited (AAIL), with TSPL presently holding 83.67 percent and AAIL owning a 16.33 percent stake.
AIL, alongside its fully-owned subsidiary Air India Express Limited (AIXL), is fundamentally taking part in providing domestic scheduled air passenger transport services, international scheduled air passenger transport services, air cargo transport services, and charter flight services in India. AirAsia India, which began 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
TATA took over Air India and Air India Express in January this year. In October 2021, Tatas arose as the triumphant bidder for loss-making Air India. It offered a bid of Rs 18,000 crore, involving a cash instalment of Rs 2,700 crore and assuming control over the carrier’s debt worth Rs 15,300 crore. deals beyond a specific threshold require the permission of CCI, which attempts to encourage competition as well as check hostile to cutthroat practices in the commercial centre.
