Air India has sought approval from the Competition Commission of India (CCI) to acquire the entire equity share capital of AirAsia India. Tata Sons, which owns Air India, holds 83.7 per cent of the equity share capital of AirAsia India, part of Malaysia’s AirAsia Group.
“The proposed combination relates to the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India / Target), by Air India Ltd. (AIL), an indirect wholly owned subsidiary of Tata Sons Private Limited (TSPL). At present, TSPL holds 83.67 per cent of the equity share capital of AirAsia India,” the notice filed with CCI stated.
Air India and its low-cost subsidiary Air India Express were acquired last year by Talace Private Limited, a wholly-owned subsidiary of Tata Sons.
In a notice filed with the CCI, the group said that the proposed deal will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition.
It said that there would be horizontal overlaps in the markets for domestic passenger air transport services, provision of domestic air cargo transportation services, and provision of charter flight services in India.
Tata took over Air India and Air India Express in January this year. In October 2021, Tata emerged as the winning bidder for loss-making Air India. It offered a bid of Rs 18,000 crore, comprising cash payment of Rs 2,700 crore and taking over the carrier’s debt worth Rs 15,300 crore.