Ending its uncomfortable journey in India after eight years, Malaysia-based AirAsia Group on Wednesday said it has exited AirAsia India by selling its remaining 16.67 per cent stake to Tata Group-owned Air India for Rs 155.64 crore. Later in the day, Air India said it has begun the process of creating a single low-cost carrier subsidiary by merging AirAsia India and Air India Express. A working group consisting AirAsia India CEO Sunil Bhaskaran and Air India Express CEO Aloke Singh has been formed for the two carriers' integration, which is expected to take approximately 12 months, it added.
Sunil Bhaskaran, AirAsia India's chief executive officer (CEO) and managing director (MD), is the front-runner to head the low-cost carrier that will take birth after the merger of Air India Express and AirAsia India, sources said. In a show of confidence, the airline's board extended Bhaskaran's tenure by three years -- until March 2025 -- in a meeting held earlier this year, according to the documents reviewed by Business Standard. Moreover, AirAsia India's board of directors has increased Bhaskaran's salary twice in 2022 -- first in January by 5 per cent and then in June by 7 per cent, the documents showed.
Tatas-owned Air India plans to acquire no-frills carrier AirAsia India and has sought approval from the Competition Commission for the proposed deal. AirAsia India is majority-owned by Tata Sons Private Ltd with a shareholding of 83.67 per cent and the remaining stake is with AirAsia Investment Ltd (AAIL), which is part of Malaysia's AirAsia Group. Full service carrier Air India and its low-cost subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year. Besides, Tatas operate full service airline Vistara in a joint venture with Singapore Airlines.
The case relates to alleged violation of norms by directors of the aviation company for relaxation of 5/20 rules to get licenses for international operations
The Delhi high court on Thursday dismissed BJP leader Subramanian Swamy's plea seeking to set aside the Air India divestment process on the allegation that the methodology adopted by the government in the valuation of the national carrier was "arbitrary, illegal and against public interest". The order was passed by a bench of Chief Justice D N Patel and Justice Jyoti Singh. The court said a detailed order will be uploaded. "Dr. Subramanian Swamy, sir we are dismissing this matter...," the bench said.
India's new low-cost airline plans to go to Northeast.
This is the first time that AirAsia chief has raised concerns about the dual airline strategy of the Tata group, his partner.
Salt-to-software conglomerate Tata group was among "multiple" entities who on Monday put in preliminary bids for buying the government's stake in loss-making carrier Air India.
Tony Fernandes had blamed Indian domestic carriers for preventing AirAsia's India launch earlier, too, but this was the first time he named an airline.
They say better late than never. For the Tatas, the original owners of Air India, bringing back the airline to its fold is worth the wait even if the attempt to privatise the bleeding national carrier by successive governments has taken over two decades. While many airlines have come and gone from the Indian skies since the time when the first move was made to privatise Air India to date, the salt-to-software conglomerate has never let the love affair with aviation, more so with Air India that its former chairman Jehangir Ratanji Dadabhoy Tata (JRD) had, to go off the radar. It is said that Tata group executives used to complain in private that JRD -- the pioneer of the Indian aviation industry -- spent more time worrying about Air India than the Tata group when he was heading both the entities.
Over four months ago the Foreign Investment Promotion Board cleared a proposal for the setting up of a new airline, AirAsia India, by Malaysian carrier AirAsia which has joined hands with the Tata Group and Arun Bhatia of Telestra TradePlace in a 49:30:21 joint venture partnership.
AirAsia India on Monday moved closer to getting off the ground by appointing S Ramadorai as its Chairman, ending months-long suspense and having in place the entire top management team.
In the initial phase, it would concentrate on destinations in south India, and on providing connectivity to small towns.
In an email, a SpiceJet spokesperson said: "A few foreign airlines/investors have evinced interest in SpiceJet. It will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties."
The hotel brand goes by the 'great value, great savings' tagline.
One thing is certain: The part-Goan, part-Malayali group CEO of Air Asia is not your usual boardroom CEO, and he cultivates the maverick businessman image, buying race car teams and football clubs and taking off-beat bets with his mentor and now buddy Richard Branson of Virgin.
Tata Sons will increase its stake in budget carrier AirAsia India (AAI) to 83.67 per cent by acquiring an additional 32.67 per cent for $37.66 million from AirAsia Investment Ltd (AAIL), according to a regulatory filing. Currently, AAIL, which is a wholly-owned subsidiary of Malaysia-based AirAsia, holds 49 per cent stake in the Bengaluru-based AirAsia India. In a regulatory filing to stock exchange Bursa Malaysia, AirAsia said, "The board of directors of AirAsia wishes to announce that its wholly-owned subsidiary AAIL and Tata Sons Pvt Ltd, India, on December 29, entered into a share purchase agreement."
Thai AirAsia operates a daily flight between the Indian and Thai capitals, besides a weekly flight between Kolkata and Bangkok.
With cash shortage and plans going awry, the AirAsia owner is looking to cash out of the venture he built with Ratan Tata in 2013.
Air Asia's difference approach has been developing a portfolio first. We were the first airline to fly to Trichy and then after going to newer and uncharted markets.
Right from the early days of liberalisation, there have been political controversies surrounding several cases that landed on the FIPB table and which, in turn, have often led to court battles.
With its nominees on the board, Tata Sons will have the controlling stake of 51%.
AirAsia is facing a legal challenge from Bharatiya Janata Party MP Subramanian Swamy, whose petition comes up for hearing at the Delhi HIgh Court on Wednesday.
No-frills carrier AirAsia India on Monday offered rock-bottom fares, starting at as low as Rs 1,299 for domestic flights, as part of the parent AirAsia's global sale offer for a limited period.
Tony Fernandes said the aviation sector here was a "double marathon" and not a "sprint".
The country's fourth budget carrier has also announced the addition of Kochi to its existing network from July 20.
The airline is not convinced that it will have a sizeable passenger traffic to make wide body operations profitable
Sources in the know confirmed Vistara, the joint venture between Tata Sons and Singapore Airlines, had booked six slots at the airport in New Delhi, adding it was ready to fly once it secured the government's nod.
AirAsia may breakeven by June this year.
Sanjiv Kapoor questions the rival's change in strategy and claims of full load.
It has aircraft utilisation target of 16 hours as against the current 13 hours.
AirAsia's rival airlines in India have kept themselves super-busy in the past few months -- by moving court against the former's launch, adding flights on the routes where AirAsia is operating, and engaging in a price war.
Both Vistara and AirAsia India, along with their partners, are quietly putting together an aggressive plan to become a formidable force in the skies. At the core of this new push is their plan to go international this financial year.
Vistara, an airline in which Tata Sons owns 51 per cent stake, is one of those which wants a relaxation in rules, saying these are important for the country's economic growth.
IndiGo which has close to 40 per cent market share, at present has 129 aircraft and operates 883 daily flights to 44 destinations. It also has around 400 aircraft on order.
Based on the Skytrax ranking for 2018, IndiGo is number two among the best low-cost carriers in Asia, behind rival AirAsia.
Following the entry of Tata-SIA and AirAsia into the Indian aviation market, the domestic aviation industry is seeing increased interest from private entities.
Divers on Thursday searched the sunken fuselage of the crashed AirAsia jet in the JavaSea to retrieve the missing bodies of the 162 people killed in the disaster, a day after the main wreck was located in the choppy waters after over two weeks of multi-national hunt.
Experts said the risks associated with the Indian Experts say that aviation sector would keep investors away from airline stocks.
Eyeing potential business opportunity, Boeing Corporation is planning to approach the proposed Tata-Singapore Airlines.
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