AirAsia has sold its remaining stake in AirAsia India to state-owned Indian carrier Air India Ltd. The Singapore-based airline initially invested $16 million in the Vistara-owned joint venture in 2005, which now operates as India’s second airline. The sale has been completed through a mix of cash and warrants.
AirAsia Sells Remaining Stake
The AirAsia Group’s India arm and Air India will be shutting down their joint venture airline, AirAsia India, on March 31. The airlines have sold their 26 percent stake to Air India, leaving the latter as the sole owner of the Indian business.
Read Also : Air India’s new menu features
Subsidiary AirAsia India will go public next year and rebrand as Air India, the government said on Friday. The deal valued the carrier at $1.93 billion, which includes an earlier agreement to acquire a 49 percent stake from Singapore Airlines in exchange for repayments and an upfront cash payment of $892 million.
AirAsia will sell its remaining stake in AirAsia India to Air India, marking a significant milestone in the company’s growth story. The transaction value is an estimated Rs 490 crore.”This is a recognition of the commitment of our efforts and investment over the years. We are proud to announce that we are selling our remaining 26 percent stake in AirAsia India to Air India at a market value of Rs.490 crore.
AirAsia Group announced on Friday that it is selling its remaining stake in AirAsia India to national carrier Air India. The sale has been approved by the government of India – and is subject to regulatory approvals now being processed.
AirAsia, India’s largest low-cost carrier, has sold its remaining stake in AirAsia India to state-owned Air India. The Malaysian-based airline said it had entered into a sale and purchase agreement with the Indian aviation PSU for its entire 25% shareholdings in the carrier.
While both the company has stated that they will continue to operate as separate entities, the deal would mean that AirAsia will end up with a much smaller presence in India.
San Fransisco-based Air Asia has sold its remaining stake to the national carrier of India, Air India. Both India-wide and Asia-wide Chief Executive Officer Akbar Javed Ahmed Khan said that the deal will be beneficial for both parties, as well as their customers. He added that both companies would collaborate to increase their network and share flights in each other’s region.
AirAsia’s plan to sell its remaining stake in AirAsia India has been scrapped. The carrier said its board today decided to cancel the deal with the Indian Civil Aviation Ministry which was expected to close before the end of this month. At present, AirAsia holds a 38% stake in the airline that is operated by Tata Sons venture after giving up its earlier plan to sell 20% owing to lingering civil aviation regulations issues
As part of its ongoing strategy to rationalize, AirAsia has decided to sell over 90% of its India operations to Air India Limited.
AirAsia India’s tender offer to buy out AirAsia’s 26% stake in AirAsia India has concluded. The airline has now emerged as the owner of around 54% stake in India’s largest low-cost carrier. The alliance between the two carriers will help them compete on both domestic and international routes.
Comments