CCI approves acquisition of AirAsia India by Air India

The Competition Commission of India (CCI) on Tuesday approved the acquisition of the entire shareholding in AirAsia India by Air India, a wholly-owned subsidiary of Tata Sons.

Air India had earlier proposed to buy AirAsia India, according to an application with CCI. The move will see Malaysia's Air Asia exiting the airline venture nine years after it entered India with high hopes.

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. 

Air India is an indirect wholly-owned subsidiary of Tata Sons Pvt. Ltd (TSPL), which presently holds 83.67 per cent equity share capital of AirAsia India. Malaysia’s AirAsia Investment Ltd holds a balance 16.33 per cent stake in the carrier. 

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.