Tata Sons’ wholly-owned subsidiary Air India’s acquisition of the entire shareholding in Air Asia India was approved by the Competition Commission of India (CCI)on Tuesday.
Confirming the approval of the proposal through a press release, the CCI said, “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 TSPL. At present, TSPL holds 83.67% of the equity share capital of Air Asia India.”
“AIL, along with its wholly-owned subsidiary, Air India Express Limited (AIXL), is primarily engaged in the business of providing (a) domestic scheduled air passenger transport service, (b) international scheduled air passenger transport service, (c) air cargo transport services in India, and (d) charter flight services in India,” it added.
“Air Asia India is a joint venture between TSPL and Air India Investment Limited (AAIL) with TSPL presently holding 83.67% and AAIL holding 16.33% of the shareholding. Air Asia India operates under the brand name “AirAsia”. It is engaged in the business of providing the following services: (a) domestic scheduled air passenger transport service, (b) air cargo transport services, and (c) charter flight services in India. AirAsia India does not provide scheduled air passenger transport services on international routes,” the release noted.
A detailed order of the CCI will follow today’s confirmation, the Commission said.
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