AirAsia sells its remaining equity shares in India operations to Tata-led Air India
This agreement comes as AirAsia returns to the skies stronger than ever since the outbreak of Covid-19, which allowed the airline to re-examine its strategic objectives, to focus on ASEAN given its strong network and significant presence in the region.
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FollowAirAsia Aviation Group Limited on Wednesday (November 2) announced that it has entered into a share purchase agreement to sell the remaining equity shares held in low cost carrier AirAsia (India) to Tata Group-owned Air India.
This agreement comes as AirAsia returns to the skies stronger than ever since the outbreak of Covid-19, which allowed the airline to re-examine its strategic objectives, to focus on Asean given its strong network and significant presence in the region.
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Since January this year, AirAsia has flown more than 171,000 flights, carrying over 23 million passengers across the Group.
Earlier in June, the Competition Commission of India (CCI) had approved Air India's proposal to buy the entire equity share capital of AirAsia India to merge into a single airline.
The autos-to-steel conglomerate had 83.67% stake in AirAsia India and the remaining stake is with AirAsia Investment Ltd (AAIL), which is part of Malaysia's AirAsia Group.
"Since 2014 when we first commenced operation in India, AirAsia has built a great business in India, which is one of the world’s biggest civil aviation markets in the world. We have had a great experience working with India’s leading Tata Group," Group CEO of AirAsia Aviation Group Bo Lingam had said.
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"Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines– in Malaysia, Thailand, Indonesia and the Philippines– with a much loved brand and presence," the Group CEO further said.
"India will remain an important market for AirAsia and will continue to be served by our various airlines. We will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the Asean-Indian market in logistics and passenger services to a far greater extent," he added.
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