Tata Group is Acquiring 16.67% share in the AirAsia India

AirAsia Bhd left the Indian low-cost carrier that carried its brand, with its majority Indian partner, Tata Group’s Air India, agreeing to acquire the 16.67% share the Malaysian carrier still held in AirAsia India for INR 155.65 crore. The Malaysian business said that AirAsia India has a 12-month license to use the "AirAsia" brand name under the terms of the share acquisition deal.

In a different statement, Air India announced that AirAsia India and Air India Express would join in about a year. The combined company will adopt the name Air India Express.

The two airlines will be integrated by a group that is co-led by the CEOs of Air Asia India and Air India Express. The working group will present its findings to a committee led by the managing director of Air India. Smaller Indian towns are connected to the Gulf and Southeast Asia via short- and medium-haul routes operated by Air India Express. 24 aircraft are in the fleet of the Air India division stationed in Kochi. With full ownership of Air India, Air India Express, and AirAsia India, the Tata group is now able to share infrastructure more easily and cut expenses across all three airlines. The fourth is a 51:49 joint venture between Singapore Airlines and Tata Sons called Tata SIA Airlines, which runs as Vistara.

However, the Tata Group is also having "secret negotiations" about the possibility of merging Vistara and Air India "on the subject with Singapore Airlines. The Tata Group is attempting to integrate both low-cost and full-service models for all four airlines onto a single platform. The two low-cost airlines under the Tata umbrella, Air India Express and AirAsia India, will be better able to integrate as a result of this.

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