KUALA LUMPUR (June 16): The Competition Commission of India (CCI) approved Air India's proposal to acquire the entire shareholding of low-cost carrier AirAsia India.
In a statement on Tuesday (June 14), CCI approved Air India's proposal to acquire the entire shareholding of AirAsia India.
"The proposed combination envisages the acquisition of the entire equity share capital of AirAsia (India) Pte Ltd (AirAsia India) by Air India Ltd, an indirect wholly-owned subsidiary of Tata Sons Pte Ltd.
“The latter currently holds 83.67% of the equity share capital of AirAsia India," the CCI said.
AirAsia India was set up in 2014 as a joint venture between Tata Sons and AirAsia Bhd, in which Tata Sons raised its stake to 83.67% in December 2020.
The airline does not have rights to operate international flights.
Air India and AirAsia India have a combined domestic market share of 13%.
The approval comes almost six months after the government transferred the ownership of Air India and Air India Express to Tata Sons.
Tata Sons has four airlines in its fold — Air India, Air India Express, AirAsia India and a 51% stake in the joint venture with Singapore Airlines, Vistara.
An integration of Vistara’s business with Air India is likely to take time as negotiations are still underway with Singapore Airlines.