The CCI has approved Air India's acquisition of AirAsia India

15 Jun 2022 , 08:47 AM

Tata Sons, which owns 83.67% of AirAsia India, is the main shareholder. The remaining interest in AirAsia India is held by AirAsia Investment Ltd, a subsidiary of Malaysia’s AirAsia Group.

The Competition Commission of India has approved Air India, a wholly-owned subsidiary of Tata Sons, acquiring the whole stake in AirAsia India, the competition agency announced on Twitter.

Tata Sons, which owns 83.67% of AirAsia India, is the main shareholder. The remaining interest in AirAsia India is held by AirAsia Investment Ltd, a subsidiary of Malaysia’s AirAsia Group.

In April, Air India submitted a request to the Indian Competition Commission to buy AirAsia India. In collaboration with Singapore Airlines, Tata Sons also operates the airline Vistara.

Air India would buy AirAsia’s 16.3% share in AirAsia India for roughly Rs139 crore as part of the arrangement. Air India Express, a subsidiary of Air India, will be able to dramatically expand its overseas operations as a result of the move.

The decision by the CCI will also aid the salt-to-steel conglomerate in consolidating its aviation businesses, which include Singapore Airlines Ltd’s local joint venture Vistara, AirAsia India Pvt Ltd, Air India, and Air India Express.

The merged company of Air India and AirAsia India would have a 15.7% share of India’s domestic passenger market and is unlikely to change India’s aviation sector competitive landscape.

Tata Sons bought Air India for Rs18,000 crore in equity and debt on January 27 this year through its wholly-owned subsidiary Talace.
Deals that are above a specific threshold must be approved by the competition watchdog CCI. AirAsia India began its operations in the country in June 2014. The airline provides regular passenger, cargo, and charter flight services throughout the country.