Tata’s Air India Plans to Acquire AirAsia’s Local Venture
Air India, which was taken over by Tata Sons in January, has offered to acquire the entire share capital of AirAsia India.
(Bloomberg) -- Air India Ltd., which was taken over by Tata Sons Pvt in January, has offered to acquire the entire share capital of AirAsia India, according to a filing with the country’s anti-trust regulator.
The proposed offer seeks to buy the residual stake held by AirAsia Bhd., the filing on the website of the Competition Commission of India showed. Tata Sons holds a 83.67% stake in AirAsia India.
The decision comes as Tata Sons is trying to turn around Air India, which survived on taxpayer bailouts for years. The move could help the salt-to-steel conglomerate salvage its aviation empire, which constitutes three unprofitable carriers now, including Singapore Airlines Ltd.’s local joint venture Vistara.
Representatives for Tata Sons and Air India didn’t have immediate comments on the development.
The deal will not cause a change in the competitive landscape nor will it have any adverse effect on competition, Tatas said in their offer. But the airlines will face some overlaps in their domestic passenger and cargo services along with charter flights.
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