Air India seeks approval from CCI as it plans to acquire AirAsia India
In addition, the Tata company owns and runs the full-service airline Vistara in a joint venture with Singapore Airlines. The current decision is most likely part of the conglomerate's efforts to streamline its airline operations.
FollowTata-owned Air India has applied to the Competition Commission of India for permission to buy low-cost airline AirAsia India. Tata Sons Private Ltd owns the majority of AirAsia India, with an 83.67% stake.
AirAsia Investment Ltd (AAIL), a subsidiary of Malaysia's AirAsia Group, owns the remaining ownership. Last year, Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, bought full-service airline Air India and its low-cost subsidiary Air India Express.
In addition, the Tata company owns and runs the full-service airline Vistara in a joint venture with Singapore Airlines. The current decision is most likely part of the conglomerate's efforts to streamline its airline operations.
Deals over a specific level must be approved by CCI, which seeks to promote competition while also combating anti-competitive activities in the marketplace. AirAsia India, which began operations in June 2014, provides scheduled air passenger transport, cargo transport, and charter flight services throughout the nation. It has no overseas activities.
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According to the notice, regardless of how the relevant markets are characterised, the proposed merger would not result in any change in the competitive environment or have any noticeable adverse effect on competition in India.
In January of this year, Tatas acquired Air India and Air India Express. Tatas was the successful bidder for loss-making Air India in October 2021. It made an offer of Rs 18,000 crore, which included a cash payment of Rs 2,700 crore and the assumption of the carrier's debt of Rs 15,300 crore.
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