New Delhi: The Competition Commission of India (CCI) on Tuesday said it has approved the acquisition of the entire shareholding in Air Asia India by Air India, a wholly-owned subsidiary of Tata Sons.
"CCI approves acquisition of entire shareholding in Air Asia India by Air India, a wholly-owned subsidiary of Tata Sons," the Competition Commission of India tweeted. The proposed combination relates to the acquisition of the entire equity share capital of AirAsia India Private Limited by Air India Ltd, an indirect wholly-owned subsidiary of Tata Sons Private Limited (TSPL).
Both Air India and AirAsia are run by the Tata group. Air India is a wholly-owned subsidiary, while AirAsia India is a joint venture with Malaysia's AirAsia. Tata group also operates full-service carrier Vistara in a joint venture with Singapore Airlines.
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 CCI said.
AirAsia India, a low-cost Indian carrier, is run by the Tata Group. Presently, Tata Sons holds 83.67 per cent of the company. The remaining 16.33 per cent of the company is owned by AirAsia Investment Ltd (AAIL), which is part of Malaysia's AirAsia Group.
Air India Ltd (AIL) and its subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year.
Tata Sons formally took over Air India on January 27, 69 years after the government nationalised and took control of the airline from its original founder JRD Tata in August 1953.It has now started the process of integrating four airlines under its belt.
As part of this process, all the four airlines- Air India, Air India Express, Vistara, AirAsia India and ground handling firm Air India SATS Airport Services Private Limited (AISATS) will move to a single office.