JOIN USAir India proposes to acquire AirAsia India
A proposal to acquire Air Asia India has been put in front of the competition watchdog- Competition Commision of India (CCI) by Air India which was recently acquired by Tata Sons.
Air Asia India is one of the low cost carriers in India and is run by the Tata group. Tata Sons presently holds 83.67 per cent.
Full service carrier Air India and its low-cost subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year.
Besides, Tatas operate full service airline Vistara in a joint venture with Singapore Airlines.
The latest move is likely a part of the sprawling group's efforts to consolidate its airline operations.
"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," a notice filed with the Competition Commission of India (CCI) said.
Deals beyond a certain threshold require the approval of CCI, which works to foster competition as well as curb anti-competitive practices in the market place.
AirAsia India, which started flying in June 2014, offers scheduled air passenger transport, air cargo transport and charter flight services in the country. It does not have international operations.
According to the notice, the proposed combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined.
Tatas took over Air India and Air India Express in January this year.
In October 2021, Tatas emerged has 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.
(With agency inputs)
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