CCI Approves Acquisition Of AirAsia India's Entire Shareholding By Air India

Currently, Tata Sons Private Limited holds 83.67 per cent of the equity share capital of Air Asia India, according to the notice filed with the CCI

Air India and Air Asia, the two combined entities, will now have a 15.7 per cent share in the country’s domestic passenger market.

Source : Getty

India’s anti-trust regulator Competition Commission of India (CCI) on Tuesday said it has approved acquisition of entire shareholding in AirAsia India by Air India, a wholly-owned subsidiary of Tata Sons.

News agency ANI has tweeted about the development on Tuesday.

Competition Commission of India approves the acquisition of the entire shareholding in Air Asia India by Air India, a wholly-owned subsidiary of Tata Sons. pic.twitter.com/o7NrVTq18A

— ANI (@ANI) June 14, 2022

“The proposed combination relates to the acquisition of the entire equity share capital of AirAsia India Private Limited by Air India Ltd- an indirect wholly-owned subsidiary of Tata Sons Private Limited (TSPL).

Currently, Tata Sons Private Limited holds 83.67 per cent of the equity share capital of Air Asia India, according to the notice filed with the CCI.

Air India and Air Asia, the two combined entities, will now have a 15.7 per cent share in the country’s domestic passenger market, according to news reports.

Air India Express, a subsidiary of Air India, doesn’t operate in the domestic market and flies only between India and Gulf routes.

Tata Sons, which assumed management control of Air India in January, has started the process of integrating the four airlines under its belt. As part of this process, all four airlines – Air India, Air India Express, Vistara, AirAsia India, and ground handling company AISATS will move into a single office, according to news report.

Last month, Air India has launched a voluntary retirement scheme (VRS) for its employees. In a bid to encourage a significant section of its employees to voluntarily retire, the airline has reduced the eligibility age from 55 to 40 and also announced cash incentive.

The Tatas took control of Air India on January 27, 2022, after successfully winning the bid for the airline on October 8 last year.

Meanwhile, The Directorate General of Civil Aviation (DGCA) has imposed a fine of Rs 10 lakh on Air India for denying boarding to passengers holding valid tickets.