Air India has proposed to acquire a 100 per cent equity of AirAsia (India) Private Limited. Air India made the proposal in a petition moved before the Competition Commission of India (CCI).

Air India Private Limited was formally acquired by Tata Sons Private Limited through a wholly-owned subsidiary company, Talace Pvt Ltd, on January 27, 2022.

Meanwhile, Tata Sons holds 83.67 per cent stake in AirAsia, while the remainder 16.33 per cent is held by AirAsia Investment Limited (Malaysia).

Both aviation businesses provide domestic scheduled air transport services, air cargo transport services and charter flight services in India. Air India also operates commercial international flights.

In its note to the CCI, Air India has said “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.”

But as expected, the combination will lead to overlaps in the domestic air transport, cargo, charter flights, in-flight catering services markets, along with ground handling markets at Bengaluru, Hyderabad, Delhi, Thiruvananthapuram and Mangalore airports.

On Tuesday, India Today Television had reported that Tata Sons is working on a plan to move all its aviation assets – Air India, Vistara (optional), AirAsia, Air India Express and AI SATS (ground handling supplier) under one roof, which includes a new office space in Gurugram.


India today