Air Asia sells remaining stake in India operations to Air India
Air Asia sells stake to Air India: Air Asia Aviation Group Limited has decided to sell its remaining stake in India operations to Tata-led Air India. As per a regulatory filing, Air Asia India will sell its remaining 16.33 per cent of Air Asia's equity shares to Air India Limited, a subsidiary of Tata Sons Private Limited.
The decision has been taken to strengthen its focus on ASEAN (Association of Southeast Asian Nations), Air Asia said in a statement.
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"All customary consents and regulatory approvals have been secured. AAAGL is expected to receive Rs 1,556,487,800 (equivalent to .83 million) in gross proceeds. There will be no gain or loss on the disposal as Capital A has marked the remaining 16.33% in AAI to its fair value," the company said in a statement.
Air Asia, with a market share of 5.7 per cent was the fifth-largest airline in India. With a market share of 56.2 per cent, IndiGo remains the biggest airline in the country.
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Following the stake sale, Air Asia-Air India combine will now command 15.7 percent share of India’s domestic passenger market.
Tata Sons has acquired Air India in January this year in a Rs 18,000 crore deal.
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