New Delhi: The Competition Commission of India said it has approved the proposed acquisition of the entire shareholding of AirAsia India Ltd by Air India Ltd.
The proposed combination envisages the acquisition of the entire equity share capital of AirAsia (India) Pvt Ltd by Air India Ltd (AIL), an indirect wholly-owned subsidiary of Tata Sons Pvt Ltd (TSPL), a notice issued by the fair trade regulator said.
AirAsia India is a joint venture between TSPL and Air Asia Investment Limited (AAIL), with TSPL presently holding 83.67 per cent and AAIL owning a 16.33 per cent stake.
AIL, along with its wholly-owned subsidiary Air India Express Limited (AIXL), is primarily engaged in the business of providing domestic scheduled air passenger transport service, international scheduled air passenger transport service, air cargo transport services, and charter flight services in India.
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.
Full-service carrier Air India and its low-cost subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year.
Besides, Tatas operate the full-service airline Vistara in a joint venture with Singapore Airlines.
Tatas took over Air India and Air India Express in January this year.