AirAsia sells remaining equity shares in AirAsia India to Air India
Nov 02, 2022
Sepang [Malaysia], November 2 : AirAsia Aviation Group (AAAGL), the holding company of Capital A's airline group, on Wednesday announced it entered into a share purchase agreement to sell the remaining equity shares held in AirAsia India to Air India, an affiliate of the Tata Sons Group.
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, a company statement said. To date, AirAsia has flown more than 171,000 flights since January 2022, carrying over 23 million passengers across the Group.
AirAsia Aviation Group Chief Executive Officer Bo Lingam said, "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."
He said, "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," Bo Lingam said.
In tandem with the reopening of Malaysia's international borders in April this year, the company statement said AirAsia Malaysia (AK) reinstated its flight connectivity to key destinations in India and more from Malaysia, offering guests from both countries attractive deals and promotions to experience India's monuments, serene lakes, majestic mountains and many more.
AirAsia India currently flies to 18 destinations with a market share of 5.9 per cent.
