AirAsia Now Fully Owned By Tata’s Air India

AirAsia Now Fully Owned By Tata’s Air India

Business
  • AirAsia has entered a pact with Air India to sell its 16.67% remaining share in budget carrier AirAsia India for $18.83 million.
  • Withholding 100% shares in the company, Tata Sons become the sole owner of AirAsia. 
  • Tata’s Air India is planning to merge the low-cost carrier with Air India Express.

The Malaysia-based airline company, AirAsia Aviation Group announced on Wednesday (November 2, 2022) that it has sold all its shares in AirAsia (India) to Air India, a company that Tata Group now owns. AirAsia has entered a pact with Air India to sell its 16.67% remaining share in budget carrier AirAsia India for $18.83 million. Withholding 100% shares in the company, Tata Sons become the sole owner of AirAsia. 

AirAsia Aviation Group has said that the company is re-examining its strategic objective to focus more on the ASEAN area for its strong network and significant regional presence.  

The CEO of AirAsia Aviation Group Limited, Bo Lingam said in a statement, “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.”

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Till now, Tata Sons acquired an 83.67 per cent share in AirAsia and the remaining 16.67 per cent share was held by a part of Malaysia’s AirAsia Group, AirAsia Investment Ltd (AAIL). The deal was signed between both companies with $18.83 million in gross proceeds with no gain or disposal as Capital A has marked its fair value in the remaining 16.33 per cent shares to Air Asia India. 

AirAsia was launched in 2014 as a low-cost carrier as a joint venture between Tata Sons and AirAsia Berhad with 51 per cent and 49 per cent shares respectively. But due to legal convolution and effective control the company go through challenging times. Two years ago, in 2020, Tata Sons’ Air India bought 32.67 per cent shares of  AirAsia Berhad for ₹286 crores and became the owner of 83.67 per cent shares in the company.

In June 2022, the Competition Commission of India nodded to Air India’s proposal to buy all the equity shares capital of AirAsia and form a single Indian airline. And now, after buying the rest of the 16.33 per cent, Tata Group takes full control of AirAsia India. 

Air India owns AirAsia
Credit: The Indian Express

Earlier, with 5.7% of the market share, Air Asia India was the fifth-largest Indian airline. After the full acquisition, the company will be entitled to have a 15.7% share in India’s domestic aviation market. Now Air India is planning to merge the low-cost carrier with Air India Express. 

The Fourth Pillar In Tata Aviation Business

Since 1932, Tata Group continues to play a dominant role in the aviation sector in India. And even 90 years later Tata Group is still making strides in the aviation business. Expanding its business network even further, Tata Group now owns four airlines:

  • Air India
  • Air India Express
  • Vistara 
  • AirAsia India

Frequently Asked Questions (FAQ):

Q.1. How much does Tata own in AirAsia?

Earlier, Tata Group holds an 83.67 per cent share in the company. After acquiring the remaining 16.33 per cent share, Tata Group becomes the sole owner of AirAsia. 

Q.2. Which airline is currently owned by Tata?

Currently, four airline companies are owned by Tata: 

  • Air India
  • Air India Express
  • Vistara 
  • AirAsia India

Q.3. Who is the owner of AirAsia?

Air India, a company of Tata Groups is the owner of AirAsia.

Q.4. Which Tata Group is purchasing Air India?

Tata Sons

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