Air India Seeks Competition Commission’s Approval To Acquire 100% Stake In AirAsia India
It is believed that the move from Air India is likely a part of the sprawling group’s efforts to consolidate its airline operations.
New Delhi: Air India is planning to acquire AirAsia India and has sought approval from the Competition Commission for the proposed deal. It must be noted that AirAsia India is majority-owned by Tata Sons Private Ltd with a shareholding of 83.67 per cent and the remaining stake is with AirAsia Investment Ltd (AAIL), which is part of AirAsia Group.
The move from Air India is likely a part of the sprawling group’s efforts to consolidate its airline operations.
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“The proposed combination relates to the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India/ Target), by Air India Ltd (AIL), an indirect wholly owned subsidiary of Tata Sons Private Limited,” a notice filed with the Competition Commission of India (CCI) said.
Tata Group reaches Competition Commission of India (CCI) for merger of Air India and Air Asia India.
“At present, Tata Sons Private Limited holds 83.67 percent of the equity share capital of Air Asia India,” the filed notice with CCI said.
— ANI (@ANI) April 27, 2022
As per the notice, the proposed combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined.
Last year, Air India and its low-cost subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd. Apart from this, Tatas operate full service airline Vistara in a joint venture with Singapore Airlines.
Any deal beyond a certain threshold needs the approval of CCI, which works to foster competition as well as curb anti-competitive practices in the marketplace.
Since the beginning of its operations in June 2014, AirAsia India offers scheduled air passenger transport, air cargo transport and charter flight services in the country. However, the airline does not have international operations.
In January this year, the Tata Sons took over Air India and Air India Express. Prior to this, in October 2021, Tatas emerged has the winning bidder for loss-making Air India. The company offered a bid of Rs 18,000 crore, comprising cash payment of Rs 2,700 crore and taking over the carrier’s debt worth Rs 15,300 crore.
(With inputs from PTI)
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