In a fillip to the combination of airline entities owned by Tata Sons, the Competition Commission of India on Tuesday authorized Air India’s proposal to amass your entire shareholding of low-cost subsidiary AirAsia India.
“The proposed combination envisages the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India) by Air India Ltd. (AIL), an indirect wholly owned subsidiary of Tata Sons Private Limited (TSPL). The latter currently holds 83.67% of the equity share capital of AirAsia India,” the CCI stated in a press assertion.
AirAsia India was arrange in 2014 as a three way partnership between Tata Sons and Malaysia-based AirAsia Berhad, during which Tatas raised their stake to 83.67% in December 2020. The airline does not have rights to function worldwide flights. Air India and AirAsia India have a mixed home market share of 13%.
The nod comes nearly six months after the federal government transferred the possession of Air India and Air India Express to Tata Sons.
Tata Sons has 4 airways in its fold – Air India, Air India Express, AirAsia India and a 51% stake within the three way partnership with Singapore Airlines, Vistara. Air India Express does not have home flights, and the remaining three collectively have home market share of 21%.
An integration of Vistara’s enterprise with Air India is more likely to take time as negotiations are nonetheless underway with Singapore Airlines.
Meanwhile, the Competition and Consumer Commission of Singapore just lately expressed concern over the Tatas buying Air India as three associated entities – Singapore Airlines, Tata Sons and Vistara – have “overlapping passenger routes” between India and the town state, saying it wanted to “assess further” whether or not there was ample competitors from different unrelated airways equivalent to IndiGo.