Lagatar24 Desk
New Delhi, April 27: Air India aims to buy low-cost carrier AirAsia India and has applied to the Competition Commission of India (CCI) for clearance.
Tata Sons Private Ltd owns 83.67 percent of AirAsia India, while AirAsia Investment Ltd (AAIL), a subsidiary of Malaysia’s AirAsia Group, owns the rest. Last year, Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, purchased full-service carrier Air India and its low-cost subsidiary Air India Express.
In addition, Tatas has a joint venture with Singapore Airlines to operate the full-service airline Vistara. The current decision is most likely part of the conglomerate’s ongoing efforts to streamline its airline operations.
“The proposed combination relates to the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India/ Target), by Air India Ltd (AIL), an indirect wholly owned subsidiary of Tata Sons Private Limited,” a notice filed with the CCI reads.
Notably, deals that exceed a specific threshold must be approved by CCI, which aims to promote competition and prevent anti-competitive behaviour in the marketplace.
AirAsia India, which began operating in June 2014, provides scheduled passenger, cargo, and charter flight services throughout the country. It does not operate on a global scale. According to the notice, regardless of how the relevant markets are characterised, the proposed combination will not transform the competitive landscape or have a significant adverse effect on competition in India. In January of this year, Tatas acquired Air India and Air India Express.
