Competition Commission of India approves the proposed acquisition of AirAsia India by Air India
AirAsia India is a joint venture between Tata Sons Pvt Ltd. Ltd. and Air Asia Investment Ltd., TSPL currently holds 83.67% and AAIL holds 16.33%
AirAsia India is a joint venture between Tata Sons Pvt Ltd. Ltd. and Air Asia Investment Ltd., TSPL currently holds 83.67% and AAIL holds 16.33%
The Competition Commission of India on Tuesday said it has approved the proposed acquisition of AirAsia India Ltd’s entire stake by Air India Ltd.
The proposed amalgamation envisages acquisition of the entire equity share capital of AirAsia (India) Pvt Ltd. Limited by Air India Limited (AIL), an indirect wholly owned subsidiary of Tata Sons Pvt. Ltd (TSPL), said in a notice issued by the fair trade regulator.
AirAsia India is a joint venture between TSPL and Air Asia Investment Limited (AAIL), in which TSPL currently holds 83.67% and AAIL holds 16.33%.
AIL, along with its wholly owned subsidiary Air India Express Limited (AEXL), is primarily in the business of providing domestic scheduled air passenger transport services, international scheduled air passenger transport services, air cargo transport services and charter flight services in India. Is adjacent to. ,
AirAsia India, which started flying in June 2014, provides scheduled air passenger transport, air cargo transport and charter flight services in the country. It has no international operations.
The Competition Commission of India said in a tweet on Tuesday that it has approved the acquisition of entire shareholding in Air Asia India by Air India, a wholly owned subsidiary of Tata Sons.
Full-service carrier Air India and its low-cost subsidiary Air India Express were acquired last year by Tales Pvt Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd.
In addition, Tata operates the full-service airline Vistara in a joint venture with Singapore Airlines. Tata had acquired Air India and Air India Express in January this year. In October 2021, Tata emerged as the winning bidder for loss-making Air India. It offered a bid of ₹18,000 crore, which included a cash payment of ₹2,700 crore and the carrier’s debt of ₹15,300 crore.
Transactions above a certain threshold require the approval of the CCI, which works to promote competition as well as curb anti-competitive practices in the market.