Tata Sons to take over AirAsia India, to buy additional 32.67% stake in low-cost airline

Ending months of speculation, Tata Sons on Tuesday entered into an agreement to buy an additional 32.67% stake in low-cost airline AirAsia from its Malaysian partner, AirAsia Berhad, for $37.6 million. This transaction will take Tata Sons’ stake in AirAsia to 83.67%.

Currently, AirAsia Berhad’s stake in the airline is 49%. Though AirAsia Berhad has been going through financial problems and had earlier indicated it would be exiting the India business, the advantage for Tatas is that now they can put in a bid for Air India through AirAsia. Tatas, who have another airline, full-service carrier Vistara in partnership with Singapore Airlines, needs its approval to bid through this firm for Air India. So far, Singapore Airlines has not given its nod.