Tata’s Newest Thrill: Air India To Gulp AirAsia India?

Photo by Isabel Lee on Unsplash

After Tata’s super-app – Tata Neu – created a firework show, the conglomerate has new merger plans up its sleeve.

In a proposed deal, Air India has offered to acquire AirAsia India with a plan to merge the latter with budget carrier Air India Express to cut operational costs. The merger is subject to approval by the Competition Commission of India (CCI).

Both the airlines are owned by Tata Sons and the likely consolidation will achieve better synergies between its aviation businesses.

Presently, Tata Sons own 84% stake in AirAsia India while Malaysia’s AirAsia owns the rest. 

As far as Air India is concerned, last year, Tatas emerged as the winning bidder for loss-making Air India. The sprawling group acquired Air India and Air India Express in a bid of Rs.18,000 Cr.

Wingin’ it

Now that Tata Sons has started integrating its 4 airline boughs–Air India, Air India Express, Vistara, and AirAsia India – its ground handling firm AISATS will move them into a single office. The Group has identified a place in Gurugram where it will lease 70,000 square feet of office space to house the combined entity.

Tail Note

The silver lining for AirAsia India is that it is not being left high and dry, rather being acquired by Tatas one way or the other. 

Even as travel returns in the economy, Air Asia couldn’t fare better. The Air India deal could probably pull it out of its misery.

Too long? Here’s a one-liner: Tatas’-owned Air India proposed to acquire 100% stake in AirAsia India; plans to shift all 4 airline businesses under one roof in Gurugram office.

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