Air Asia sells stake to Air India: Air Asia Aviation Group Limited has decided to sell its remaining stake in India operations to Tata-led Air India. As per a regulatory filing, Air Asia India will sell its remaining 16.33 per cent of Air Asia's equity shares to Air India Limited, a subsidiary of Tata Sons Private Limited.
The decision has been taken to strengthen its focus on ASEAN (Association of Southeast Asian Nations), Air Asia said in a statement.
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"All customary consents and regulatory approvals have been secured. AAAGL is expected to receive Rs 1,556,487,800 (equivalent to $18.83 million) in gross proceeds. There will be no gain or loss on the disposal as Capital A has marked the remaining 16.33% in AAI to its fair value," the company said in a statement.
Air Asia, with a market share of 5.7 per cent was the fifth-largest airline in India. With a market share of 56.2 per cent, IndiGo remains the biggest airline in the country.
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Following the stake sale, Air Asia-Air India combine will now command 15.7 percent share of India’s domestic passenger market.
Tata Sons has acquired Air India in January this year in a Rs 18,000 crore deal.