Tata Sons has decided to increase its stake in low-cost carrier AirAsia India from 30 per cent to 41 per cent by infusing fresh capital.
AirAsia India is a joint venture between Malaysian low-cost airline AirAsia Berhad, Tata Sons and Arun Bhatia’s Telestra Tradeplace.
As per the original agreement these three partners holds 49%, 30%, 21% stakes in Air Asia India and had committed to invest 30 million US dollar in the airline.
Tata Sons will acquire the additional stake from Arun Bhatia’s Telestra Tradeplace which was subscribe to 21 per cent equity in the airline but it hasn’t done so.
With this change in ownership structure the top deck of the company has also changed, now the AirAsia India’s chief executive officer (CEO) Mittu Chandilya would also be its managing director.
Apart from Air Asia Tata Sons also holds 51 per cent stake in full-service airline Vistara a Joint venture with Singapore Airlines.
About Air Asia:
AirAsia India is an Indo-Malaysian low cost carrier headquartered in Chennai. It is a three-way joint venture with AirAsia Berhad, Tata Sons and Telestra Tradeplace. It was operational 12 June 2014 with Bangalore as its primary hub.
Note: AirAsia is the first foreign airline to set up a subsidiary in India with Tata Sons who re-entered in aviation business after a long gap of 60 years. It had started Tata Airlines in the 1930s that later became Air India and was subsequently nationalized.