Home Airlines CCI Approves Air India of Acquiring the Complete Stake of AirAsia India

CCI Approves Air India of Acquiring the Complete Stake of AirAsia India

250
0
CCI Approves Air India of Acquiring the Complete Stake of AirAsia India
Source: Google

Competition Commission of India (CCI), the anti-trust regulator, announced on Tuesday, i.e, 14th June that it has approved Air India to acquire the entire shareholding of AirAsia India. At present, Air India Limited, a subsidiary of Tata Sons Private Limited (TSPL) holds nearly 83.67% of the equity share capital in AirAsia India.

Once this deal is finalized, Tata Sons share in the Indian passenger and domestic market will approximately reach 25%. In December 2020, TSPL increased its stake in AirAsia India to 83.67% and now it is likely to acquire the remaining 16% from AirAsia Berhad, a popular Malaysian airline group.

As the Tatas have assumed management control of Air India during the month of January, they are now integrating the four airlines, which are Air India Express, Air India, Vistara, and AirAsia India along with the ground handling firm AISATS to move to a single office.

AirAsia India began its operations in June 2014 and at present offers air cargo transport, scheduled passenger transport, and charter flight services within the country. Right now, this airline doesn’t have any international flight services.

TSPL took control of Air India Express and Air India in the month of January this year. Tata Sons made the winning bid of around INR 18,000 crore for the loss-making Air India in October 2021. For this deal, they took over the debt the carrier had, which was around INR 15,300 crore and offered a cash payment of the remaining INR 2,700 crore.

An approval of the CCI is required for deals that go beyond a certain threshold. This organization works to curb anti-competitive practices in the sector and also to foster competition in the marketplace.

Book a flight to India from USA and get ready to discover the country by flying with one of the most popular airlines, Air India. So, why wait? Plan your itinerary today.

LEAVE A REPLY

Please enter your comment!
Please enter your name here