Air India gets regulatory clearance to acquire AirAsia India

The Tata Group has not been sitting quietly, waiting for their new CEO to arrive at Air India. A lot of small tweaks are already underway. And some big housekeeping items such as consolidation of its airline portfolio as well. The first off the mark was AirAsia India, which is already owned majorly by the group.

Air India gets approval from the Indian regulator to combine AirAsia India with itself.

In April 2022, Air India filed a request with the Competition Commission of India (CCI), India’s anti-trust regulator, to acquire its entire shareholding in AirAsia India. This request has now been approved, as per a tweet from CCI today.

While it is not clear at the moment if Air India will subsume the operations of AirAsia India into its own, or operate it as a subsidiary, for the time being, the combined entity will have a 15.7 per cent share in India’s domestic passenger market. Air India Express, the other subsidiary of Air India, does not fly domestically, apart from a couple of tag flights here and there.

The Tata Group had raised their stake in AirAsia India to 83.67% in December 2020, and after this approval will also acquire the rest from AirAsia Berhad to become the 100% owner.

Bottomline

Air India has received regulatory approval from India’s anti-trust regulator to acquire 100% of AirAsia India. This means that India will see more airlines consolidation in the coming days, with one brand name change included.

What do you think will be the transaction path for Air India to acquire AirAsia India?


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About Ajay

Ajay Awtaney is the Founder and Editor of Live From A Lounge (LFAL), a pioneering digital platform renowned for publishing news and views about aviation, hotels, passenger experience, loyalty programs, travel trends and frequent travel tips for the Global Indian. He is considered the Indian authority on business travel, luxury travel, frequent flyer miles, loyalty credit cards and travel for Indians around the globe. Ajay is a frequent contributor and commentator on the media as well, including ET Now, BBC, CNBC TV18, NDTV, Conde Nast Traveller and many other outlets.

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