Tata Sons, through its affiliate Air India, has agreed to acquire the remaining 16.67% stake in AirAsia India from AirAsia Aviation, the holding company of Capital A’s airline group, for INR 155.65 crores.

The acquisition will help Tata Group to consolidate its airline business while enabling Malaysian multinational low-cost airline AirAsia to develop an Asean-only business.

Started flying in June 2014, AirAsia India was a joint venture between Tata Sons and Air Asia Investment.

AirAsia has flown over 171,000 flights since January 2022, carrying more than 23 million passengers across the Group.

Bo Lingam — AirAsia Aviation Group CEO said: “Since 2014 when we first commenced operation in India, AirAsia has built a great business in India, which is one of the world’s biggest civil aviation markets in the world.

“Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines– in Malaysia, Thailand, Indonesia and the Philippines– with a much loved brand and presence.

“India will remain an important market for AirAsia and will continue to be served by our various airlines.”

With a market share of 5.9%, AirAsia India currently flies to 18 destinations.

The Malaysian group said it will continue to have airlines in Malaysia, Thailand, Indonesia and the Philippines.

As per the terms of the transaction, AirAsia India is entitled to use the ‘AirAsia’ brand name for 12 months.

Air India, in a statement, said that AirAsia India would be integrated with Air India Express in about a year to form a new entity, which will be rebranded as Air India Express.

Tata Sons airlines include Air India, Air India Express, AirAsia India and Vistara, a joint venture with Singapore Airlines.

In January, Tata Group acquired Air India and Air India Express.

  Air India, Air India Express, AirAsia Aviation, AirAsia India, Bo Lingam, Capital A, Tata Group, Tata Sons