NEW DELHI: The Tata Group is increasing its participation in AirAsia India (AAIPL) from 51% to 83.67%. Tony Fernandes’ AirAsia The group will see its participation in this JV reduced from 49% to 16.33%, accordingly. AirAsia Berhad informed the Malaysian stock exchange on Tuesday about the sale of its 32.67% stake in AAIPL to Tatas for about $ 37.7 million.
“AirAsia’s board of directors would like to announce that its wholly owned subsidiary, AAIL, signed a share purchase agreement (SPA) with Tata Sons Private Limited (TSL) on December 29, 2020 to sell a stake of 32.67 %.. to TSL for a total amount of consideration (purchase consideration) of $ 37,660,000, “said the regulatory filing.
Comments have been requested from Tatas and AAIPL and are awaiting.
The transaction puts Tata Group firmly in command of the low-cost carrier, which will be its offering vehicle for Air India. Tata’s other partner airline, Singapore Airlines (SIA), with whom they run the full service JV Vistara, has yet to agree to Air India’s offer due to its own financial challenges in the pandemic.
Sources say all attempts will be made to bring SIA into the AI company at a later date due to its proven credentials as a long-haul airline.
After the grounding of Jet Airways almost two years ago, AI is the only Indian airline operating nonstop long and ultra long haul between India and North America, Europe, the Far East and Australia. Vistara started flights to London a few months ago.
One of AI’s greatest strengths is its long-haul network that its new owners can operate from day one of the takeover. And that’s where SIA’s expertise will come in handy in making the Maharaja Gambit worthwhile for Tatas, the founder of AI.
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