New Delhi: In a major development, the Malaysian budget airline AirAsia Group on Tuesday said that it is planning to sell 32.67 percent of its stake in its Indian operations to Tata Sons for $37.7 million,Also Read - For Air India Disinvestment, Govt Likely To Select Successful Bidder In 3 Weeks: Report

As per media reports, the Tata sons will hold 83.67 percent stake post the deal, while AirAsia’s stake will be squeezed to approximately 13 percent stake. The development comes after AirAsia suffered huge financial loss amid the COVID-19 pandemic. Also Read - Bids Have Been Completed, Govt Evaluating Technical Aspects: Jyotiraditya Scindia on Air India Disinvestment

This development also coincides with the deadline to submit physical bid for Air India. The deadline gets over on December 29. Also Read - No Leadership Structural Changes at Tata Sons On Anvil, Says Chairman Chandrasekaran

Issuing a statement, the AirAsia said the sale would allow the company to focus on its recovery in its key Southeast Asian markets amid the impact of the COVID-19 pandemic on travel.

“The Directors having considered the rationale for the Transaction and after careful consideration, are of the opinion unanimously that the transaction is in the best interest of AirAsia and its shareholders,” it said.

The announcement from the airline comes two months after AirAsia shut its operations in Japan, citing highly challenging conditions amid the pandemic.

As Tata Sons is taking over the operations of the private airliner and a majority stake, the conglomerate has already started the process to have a separate website for AirAsia India.