AirAsia sells remaining 16.33% stake to Air India
Tata Sons, which owns Air India, already had an 83.67% stake in AirAsia India.
Malaysia’s AirAsia Group, which operates low-cost airline AirAsia in India said on Wednesday that it has sold its remaining 16.33% stake in the company to the Tata Sons-owned Air India, Moneycontrol reported.
Tata Sons already had an 83.67% stake in AirAsia India.
“AAAGL [AirAsia Aviation Group Limited] is expected to receive Rs 1,55,64,87,800 in gross proceeds,” the group said in a statement. There will be no gain or loss on the disposal.”
With a total market share of 5.7%, AirAsia India was the fifth-largest airline in India, according to NDTV. Indigo remains the biggest with a market share of 56.2%.
Air Asia Aviation Chief Executive Officer Bo Lingam said that the company built a great business in India since it started operations in 2014, The Economic Times reported.
“We have had a great experience working with India’s leading Tata Group,” Lingham said. “This is not the end of our relationship but the beginning of a new one as we explore new and exciting opportunities to collaborate and enhance our synergies moving forward,” he said.
On January 27, Tata Sons acquired the debt-ridden Air India for Rs 18,000 crore nearly 70 years after it had been nationalised. Air India was founded in 1932 as Tata Airlines by family scion and aviation enthusiast Jehangir Ratanji Dadabhoy Tata.