AirAsia Group reviewing investment in Indian business

Malaysian low-cost airline group AirAsia on Tuesday hinted at a potential exit from India, where it operates a joint venture (JV) budget carrier AirAsia India with the Tata Group.

In a statement, Bo Lingam, president (Airlines) of AirAsia Group, said the company’s Japan and India businesses have been “draining cash”, causing the group “much financial stress”.

“Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” he said. AirAsia Group is learnt to be in talks with Tata Sons to sell its 49 per cent stake in the JV to the latter. Notably, last month, the Malaysian airline shut its operations in Japan.