In a fillip to the integration of airline entities owned by Tata Sons, the Competition Commission of India on Tuesday approved Air India's proposal to acquire the 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 said in a press statement.
AirAsia India was set up in 2014 as a joint venture between Tata Sons and Malaysia-based AirAsia Berhad, in which Tatas raised their stake to 83.67% in December 2020. The airline doesn't have rights to operate international flights. Air India and AirAsia India have a combined domestic market share of 13%.
