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. According to a regulatory filing, Air Asia India will sell its remaining 16.33 percent equity shares of Air Asia to Air India Limited, a subsidiary of Tata Sons Private Limited.
AirAsia said in a statement that the decision has been taken to strengthen its focus on ASEAN (Association of Southeast Asian Nations).
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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 $18.83 million) in gross proceeds. There will be no profit or loss on settlement as Capital A has invested the remaining 16.33% in AAI Its fair value,” the company said in a statement.
Air Asia was the fifth largest airline in India with a market share of 5.7 percent. IndiGo continues to be the largest airline in the country with a market share of 56.2 per cent.
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Following the stake sale, the Air Asia-Air India alliance will now own 15.7 per cent share in India’s domestic passenger market.
Tata Sons has acquired Air India in January this year in a deal worth Rs 18,000 crore.