Mumbai: Tata Sons has taken the first step towards merging Air India with Air Asia to consolidate its aviation business under one umbrella. Tata group has approached the Competition Commission of India (CCI) to acquire a 100 per cent stake of Air Asia India.
As per a notice filed with the CCI, “The proposed combination relates to the acquisition of the entire equity share capital of AirAsia India by Air India – an indirect wholly-owned subsidiary of Tata Sons (TSPL). At present, TSPL holds 83.67 percent of the equity share capital of Air Asia India. “
“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 had recently raised its stake in AirAsia India to 83.67 per cent in December 2020. 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.
Tata group also controls Vistara Airlines. Air India, Vistara and Air Asia have a combined market share of 26.9 per cent, making Tata Group the second-largest domestic airline company after IndiGo.
