Thursday, February 04, 2016

Tatas eyeing a majority stake in AirAsia India but rivals may spoil the party

New Delhi: It may only be a matter of time before the Tatas become majority shareholders in two Indian airlines. Multiple sources confirmed on Thursday that discussions are on between Tata Sons and Telestra Tradeplace for Tatas to buy out Telestra’s 10% stake in low-cost carrier AirAsia India.
When this happens, the Tatas could end up owning 51% stake in this airline where as AirAsia BhD would own the remaining 49%. The Tatas already control a majority 51% stake in full service carrier Vistara where as again 49% is being held by a foreign airline, Singapore Airlines. This is what will make any possible acquisition of majority stake in AirAsia India too rather interesting though it will not violate the laid down laws.
Is this move going to spell trouble for a group which has been passionate about the aviation business for decades but was thwarted twice, before finally succeeding in running two airlines with foreign partners in India?
In the last two-and-a-half decades, the pioneer of Indian aviation has seen many highs and lows in the aviation industry. Doors finally opened for the Tatas in aviation when the government reversed an earlier policy decision and allowed foreign airlines to hold up to 49% equity stake in Indian airlines in September 2012.
04/02/16 Sindhu Bhattacharya/FirstPost
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