Tata-owned Air India has proposed to acquire low-cost carrier AirAsia India and has sought approval from the Competition Commission of India (CCI) for the proposed deal.
Let us tell you that CCI approval is required for stake transactions above a certain limit. The proposed combination will not alter the competitive landscape or cause any significant adverse impact on competition in India.
Now have more than 80 percent stake: Tata Sons Private Limited holds 83.67 percent stake in AirAsia India and the rest is held by AirAsia Investment Limited (AAIL), which is part of Malaysia’s AirAsia Group.
Air India acquisition last year: Air India and its subsidiary Air India Express were acquired last year by Tales Pvt Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd. Now Tata’s airline Air India has made a bet to buy the entire stake of Air Asia. In addition, Tata also operates a full-fledged aviation service expansion in a joint venture with Singapore Airlines.
Talking about AirAsia India, the airline started flying in June 2014 and the company provides scheduled air passenger transport, air cargo transport and charter flight services in the country. The company does not operate any international flights.