NEW DELHI, April 28 — Air India plans to acquire budget carrier AirAsia India as their owner Tata Group wants to consolidate its airline business, Indian media reported on Wednesday.
Tata Group, which bought the previously state-owned AirAsia in January and owns 83.67 per cent of AirAsia India, is working to develop Air India into a "world-class airline" brand.
Air India has approached the anti-trust regulator Competition Commission (CCI) of India to merge AirAsia India's operations with its own business, news agency Press Trust of India reported.
The proposal relates to the acquisition of the entire equity share capital of AirAsia India by Air India Ltd, the report said.
Malaysia's AirAsia Group owns the remaining 16.33 per cent stake in AirAsia India, which began services in 2014.
AirAsia India was launched in a three-way partnership between the Malaysian company and two Indian companies, including the Tatas who later bought out the Indian partner and further raised their stake in the venture.
Tata also owns a 51 per cent stake in Vistara airline, which it started in 2013 in partnership with Singapore Airlines.
This year, it became the owner of Air India Express, a low-cost unit of Air India, which it acquired as part of the US$2.4 billion equity and debt deal.
— Bernama
