The Tata group will provide as much as $50 million in emergency funding to keep its budget airline joint venture in India with Malaysia’s AirAsia Group Bhd afloat, two people directly aware of the matter said.
The fund infusion through a mix of debt and equity could see the Tata group’s stake in Air Asia India Ltd grow beyond the current 51%, the people said on condition of anonymity.
The Malaysian parent, struggling to recover from a global slump in travel, has stopped funding the Indian operations and has hinted at exiting the market, leaving Air Asia India dependent on the Tata group to fund the cash burn suffered during the pandemic.
