Air India plans to acquire AirAsia India, seeks approval from CCI
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Tata Sons Private Limited holds 83.67 percent stake in AirAsia India and the rest is held by AirAsia Investment Limited (AAIL), which is part of Malaysia’s AirAsia Group.
owned by Tata Air India ,Air India) has launched the economical aviation service AirAsia (Air Asia) has proposed the acquisition of India and the Competition Commission for this proposed deal (CCI) has sought approval. Tata Sons Private Limited holds 83.67 percent stake in AirAsia India and the rest is held by AirAsia Investment Limited (AAIL), which is part of Malaysia’s AirAsia Group. Air India and its subsidiary Air India Express were acquired last year by Tales Pvt Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd. In addition, Tata also operates a full-fledged aviation service expansion in a joint venture with Singapore Airlines.
proposal sent to CCI
Air India has sent a proposal to CCI regarding the acquisition plan. CCI approval is required for stake transactions above a certain limit. A notice filed with the Competition Commission of India (CCI) said, the proposed combination relates to the acquisition of the entire equity share capital of AirAsia (India) Pvt Ltd by Air India Limited (AIL) by a competitor from the proposed combination, the notice said. There will be no change in the scenario or any significant adverse impact on competition in India. AirAsia India commenced operations in June 2014 and provides scheduled air passenger transport, air cargo transport and charter flight services in the country. The company does not operate any international flight.
Tata group to strengthen aviation business
The latest decision of the Tata Group is a part of efforts to strengthen its aviation business. Tata Sons officially took over Air India on 27 January. In this way, the Tata group now has a total of 4 airlines and a ground handling company. In which Air India SATS Airport Service Private Limited along with Air India, Air India Express, Vistara, and Air Asia India are there. The Tata Group now wants to bring them into one office. According to reports, Tata Group has selected a place near Gurgaon where these four airlines can be brought. According to media reports, airlines may shift to this office in the next 2 to 3 months.