Monday, November 30, 2020

Tata Group may increase stake in AirAsia India, rebrand it: Report

Tata Group, which was reportedly in talks with AirAsia's parent company AirAsia Group Berhad last week for a $50 million emergency funding to keep the carrier flying in India, is now planning to raise its stake in AirAsia India to more than 76 per cent by 2021, Business Standard reported quoting sources familiar with the matter. 
 AirAsia India is a joint venture between Tata Group and Malaysia's AirAsia Investment Ltd. DH could not independently verify this report. AirAsia's Malaysian parent, which owns a 49% stake in AirAsia India, had hinted earlier this month that it may exit India. It had stated that it was reviewing its investment in a joint venture airline. 
 The Tata Group's move to boost their stake will allow the company an exit route, whose India unit has been adding to the group’s financial stress. "Our businesses in Japan and India have been draining cash, causing the Group much financial stress. Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India," President (Airlines) of AirAsia Group, Bo Lingam had said.
 30/11/20 Deccan Herald
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