Tatas-owned Air India has proposed to acquire a 100% stake in AirAsia India airline, according to the PTI news agency.
At present, Tata Sons Private Ltd has an 83.67% stake in no-frills carrier AirAsia India and the remaining 16.33% stake is with AirAsia Investment Ltd (AAIL), which is part of Malaysia’s AirAsia Group.
Air India has now sought approval from the Competition Commission for the proposed deal.
Last year, Tata Sons’ wholly-owned subsidiary, Talace Private Limited acquired Air India and Air India Express.
Full service carrier Air India and its low-cost subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year.
Besides, Tatas operate full service airline Vistara in a joint venture with Singapore Airlines.
The latest move is likely a part of the sprawling group’s efforts to consolidate 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 Competition Commission of India (CCI) said.
Deals beyond a certain threshold require the approval of CCI, which works to foster competition as well as curb anti-competitive practices in the market place.
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