Mumbai: The promoters of AirAsia India will infuse Rs 234 crore in the airline as it plans to grow its domestic footprint and prepares for foreign flights.
On June 14, the airline’s board approved the issue of fresh shares valuing Rs 234 crore to its two main owners — Tata Sons and AirAsia Malaysia — on a rights basis, company filings with the corporate affairs ministry show.
A day later, the Union Cabinet approved the civil aviation policy amending the controversial 5/20 norm on foreign operations by Indian carriers. AirAsia will benefit from the amendment as it does not have to wait for five years to launch foreign flight.
The fresh fund infusion is yet to take place and is subject to the board increasing the authorised share capital of the company to Rs 550 crore and receipt of other approvals.
Authorised share capital indicates the maximum amount a company can raise through the issue of shares.
AirAsia India did not respond to a query on the topic.
AirAsia India has six Airbus A320 aircraft at present and the management hopes to increase its fleet to 10 by 2016-end and 20 by 2017-end. It has a market share of 2.2 per cent and operates 40 daily flights from its bases in Bengaluru and Delhi.
AirAsia India is co-owned by Tata Sons (49 per cent) and AirAsia Malaysia (49 per cent). The remaining two per cent is held by Tata group veterans and airline's board members S Ramadorai and R Venkataramanan.
16/07/16 Aneesh Phadnis/Business Standard
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On June 14, the airline’s board approved the issue of fresh shares valuing Rs 234 crore to its two main owners — Tata Sons and AirAsia Malaysia — on a rights basis, company filings with the corporate affairs ministry show.
A day later, the Union Cabinet approved the civil aviation policy amending the controversial 5/20 norm on foreign operations by Indian carriers. AirAsia will benefit from the amendment as it does not have to wait for five years to launch foreign flight.
The fresh fund infusion is yet to take place and is subject to the board increasing the authorised share capital of the company to Rs 550 crore and receipt of other approvals.
Authorised share capital indicates the maximum amount a company can raise through the issue of shares.
AirAsia India did not respond to a query on the topic.
AirAsia India has six Airbus A320 aircraft at present and the management hopes to increase its fleet to 10 by 2016-end and 20 by 2017-end. It has a market share of 2.2 per cent and operates 40 daily flights from its bases in Bengaluru and Delhi.
AirAsia India is co-owned by Tata Sons (49 per cent) and AirAsia Malaysia (49 per cent). The remaining two per cent is held by Tata group veterans and airline's board members S Ramadorai and R Venkataramanan.
16/07/16 Aneesh Phadnis/Business Standard
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