Malaysia’s budget airline Air Asia plans to sell 32.67 per cent stake in its Indian operations to Tata Sons. This sale will be for $ 3.77 million. Air Asia India is the joint venture between Air Asia and Tata Sons and Tata Sons is a majority stakeholder in Air Asia India. The deal is expected to be completed by March 2021. The group has also said that it is ready to waive the brand license fees not paid by Air Asia India to Air Asia Berhad.
Air Asia has a 49 percent stake in Air Asia India. The group says that by selling its stake in the Indian business, Air Asia Group will be able to focus on its recovery in the major South East Asian markets. The impact of the covid 19 epidemic on travel has affected the group’s business in these markets.
The Air Asia Group said in a BORS filing that the directors of the group, after careful deliberation, have unanimously decided that the sale of stake in the group’s Indian business is in the interest of Air Asia and its shareholders. Two months ago, Air Asia closed its operations in Japan. Citing the very challenging circumstances of the Kovid period behind it.
Air Asia Group CEO Tony Fernandez said in September that the group wanted to consolidate and strengthen its presence in Southeast Asia. This may mean consolidating business from Japan and India. In November, Air Asia announced that it was reviewing its investment in India as the cost incurred on its operations there was putting a financial burden on the company.
