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KUALA LUMPUR (Dec 10): “We are in discussions with Tata at the moment,” AirAsia Group Bhd Group Chief Executive Officer Tan Sri Tony Fernandes told CNBC TV18 while answering questions about the future of AirAsia (India) Ltd on a joint venture (JV) with India-based conglomerate Tata Group.
Fernandes was quoted as saying yesterday at a CAPA Center for Aviation live event that the Indian aviation industry was a competitive market that was difficult for outsiders to enter.
“They are not welcoming. We have had fantastic partners at the Tata Group. Now it is … let’s know where we are strong, what we are good at and have no ego and if things don’t feel good then we will look at other options.
“We are strong in Southeast Asia. That is our sweet spot. India has been fantastic … we have built a lot of connectivity with India. Our brand would not have been well known without AirAsia India.
“If we should put money to continue in India or expand in ASEAN, that’s a discussion that I’m having with my partners in India and there will be some announcements one way or another,” Fernandes said.
CNBC TV18 reported that Tata has a 51% stake in AirAsia India, while the remaining 49% is owned by AirAsia Investment Ltd.
According to the AirAsia Group website, AirAsia Group owns 100% of AirAsia Investment.
The Economic Times (ET), citing recently added clauses in AirAsia India’s shareholders agreement, reported that
Tata will stop AirAsia India from paying fees to AirAsia Group if the latter does not provide funds to its low-cost airline joint venture by December 31, 2020.
According to ET’s report on Tuesday evening, Tata will also start deducting fees and offsetting them against AirAsia India shares if its JV partner AirAsia Group is unable to raise funds by subscribing to a rights offering of at least 300. crore rupees. (about RM166 million).
In Bursa Malaysia today, AirAsia Group’s share price was unchanged at 87.5 sen at 2.45 pm for a market capitalization of approximately RM2.92 billion.
Some 18 million shares were traded.
Read also:
‘I’m a front-line man,’ Fernandes says as AirAsia sees air travel make a comeback
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