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KUALA LUMPUR: AirAsia Aviation Group Limited (AAAGL), the holding company of Capital A's airline group has entered into a share purchase agreement to sell the remaining equity shares held in AirAsia (India) Private Limited (AAI) to Air India Limited.
Air India is an affiliate of Tata Sons Private Limited (TSL).
“Since 2014 when we first commenced operation in India, AirAsia has built a great business in India, which is one of the world’s biggest civil aviation markets in the world.
“We have had a great experience working with India’s leading Tata Group. This is not the end of our relationship, but the beginning of a new one as we explore new and exciting opportunities to collaborate and enhance our synergies moving forward,” AAAGL group CEO Bo Lingam said in a statement.
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“Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines– in Malaysia, Thailand, Indonesia and the Philippines– with a much loved brand and presence.
“India will remain an important market for AirAsia and will continue to be served by our various airlines. We will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the Asean-Indian market in logistics and passenger services to a far greater extent,” he added.
The latest agreement comes as AirAsia returns to the skies stronger than ever since the pandemic which allowed the airline to re-examine its strategic objectives to focus on Asean given its strong network and significant presence in the region.
To date, AirAsia has flown more than 171,000 flights since January 2022, carrying over 23 million passengers across the group.
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