CCI approves Air India buy of AirAsia stake

 

Competition Commission of India approved the proposed acquisition of the entire shareholding of AirAsia India Ltd by Air India Ltd.

 At present, the tata group owns and operates four airlines - Air India( domestic and international) Air India Express( International), Vistara( domestic and international) and Air Asia India(domestic). Air India and Air Asia have a combined market share of 13 per cent in India. The group is also planning to combine Air Asia India and Air India Express. Air India will be the flagship airline company.

The proposed combination envisages the acquisition of the entire equity share capital of AirAsia (India) Pvt Ltd by Air India Ltd (AIL), an indirect wholly-owned subsidiary of Tata Sons Pvt Ltd (TSPL), a notice issued by the fair trade regulator said. AirAsia India is a joint venture between TSPL(83.67 per cent) and Air India Investment Limited (AAIL)(16.33 per cent)

AIL, along with its wholly-owned subsidiary Air India Express Limited (AIXL), is primarily engaged in the business of providing domestic scheduled air passenger transport services, international scheduled air passenger transport services, air cargo transport services, and charter flight services in India. AirAsia India, which started flying in June 2014, offers scheduled air passenger transport, air cargo transport, and charter flight services in the country. It does not have international operations.