The Malaysian group received Rs 155 crore from this deal resulting in moving full ownership to the Tata Group. The group CEO of the AirAsia Aviation Group, Bo Lingam said that the decision taken was best suited for AirAsia in order to develop an Asean-only business
The Malaysian multinational airline AisAisa Bhd sold 16.33 per cent, being the remaining stake, in AirAsia India to Air India which is now owned by Tata. This move is followed by the recent acquisition by Tata from AirAsia Berhad of a 32.7 per cent stake for Rs 276.29 crore in December 2020.
The Malaysian group received Rs 155 crore from this deal resulting in moving full ownership to the Tata Group. After the Tata group acquired Air India last year, now it aims to consolidate its aviation businesses. Expectedly, it may merge AirAsia India and Air India Express as part of consolidation.
The group CEO of the AirAsia Aviation Group, Bo Lingam said that the decision taken was best suited for AirAsia in order to develop an Asean-only business.
Various other Malaysian airlines will continue to serve, as India will always remain an important market for AirAsia. The experience gained from the domestic market operations for AseanIndian market’s growth in logistics and passenger services to a far greater extent, will be utilised, he added.
Back in 2014, AirAsia India’s began its journey, when the Tata Group shook hands with Tony Fernandes who was then the owner of the AirAsia Group, in order to enter the low-cost aviation space.
However, the deal could not attract much traction in the competitive Indian market. Apart from this first information report (FIR) was also filed by the Central Bureau of investigation (CBI) filed a in 2018 against Fernandes alleging him having paid bribes to boost permission for international operations.
A working group was formed for evaluation and execution of the integration of Air India Express with AirAsia India, said Air India. Sunil Bhaskaran, CEO and MD of AirAsia India, and Aloke Singh, CEO of Air India Express, lead the group.
Such group will report to a steering committee chaired by Campbell Wilson, CEO and MD of Air India, who will become the chairman of Air India Express and AirAsia India. The Air India group will mark its presence both in full-service and low-cost segments, reported a media house.