AirAsia sells remaining equity stake in Indian arm to Air India
The latest agreement comes as AirAsia returns to the skies post pandemic, with a focus on ASEAN, given its strong network and significant presence in the region
AirAsia Aviation Group Ltd, the holding company of Capital A’s airline group has entered into a share purchase agreement to sell the remaining equity shares held in AirAsia (India) Pvt Ltd (AAI) to Air India Ltd, an affiliate of Tata Sons Pvt Ltd.
The latest agreement comes as AirAsia returns to the skies post pandemic. It aims to focus on ASEAN, given its strong network and significant presence in the region. AirAsia has flown more than 1,71,000 flights since January 2022, carrying over 23 million passengers, said a press statement from the holding company.
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Group CEO of AirAsia Aviation Group Bo Lingam, 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. We have had a great experience working with India’s leading Tata Group.
“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. We will use the experience and knowledge gained from operating in the Indian domestic market to grow the ASEAN-Indian logistics and passenger service‘s market to a far greater extent.”
Fifth largest carrier
As the fifth largest carrier in India with a total market share of 5.7 per cent and the first foreign airline to establish a subsidiary in the country, AirAsia India in 2019 reported 30 per cent growth in total passengers carried, strengthening its domestic position.
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AirAsia India had flown to 13 destinations pre-pandemic, including Bengaluru, Kolkata, Hyderabad, New Delhi and Tiruchirappalli, to name a few.
