Report, image by : Gan Yung Chyan, KUCINTA SETIA
Image : Researcher's Picture
The Competition Commission of India (CCI) has approved Air India's proposal to acquire the entire stake in AirAsia India, theedgemarkets.com reported.
According to a statement on Tuesday (14 June 2022), CCI approved the takeover proposal.
"The proposed merger is expected to be the acquisition of the entire equity interest in AirAsia (India) Pvt Ltd, an indirect wholly-owned subsidiary of TataSons Sdn Bhd, Air India Ltd."
TataSons currently holds an 83.67% stake in AirAsia India.
AirAsia India was established in 2014 as a joint venture between TataSons and AirAsia Bhd, before TataSons raised its stake to 83.67% in December 2020.
AirAsia India does not have the right to operate international flights.
Air India and AirAsia India have a combined domestic market share of 13%.
Six months ago, the government transferred the ownership of Air India and Air India Express to TataSons.
TataSons owns four airlines, namely Air India, Air India Express, AirAsia India, and Vistara, which holds a 51% stake and is a joint venture with Singapore Airlines.
The integration of Vistara's business with Air India may take time as negotiations are still underway with Singapore Airlines.
No comments:
Post a Comment