Wednesday, January 06, 2021

AirAsia completes deal to reduce stake in India JV

Petaling Jaya: AirAsia Group Bhd has completed the disposal of 32.67% of its stake in AirAsia (India) Ltd (AAI) to Tata Sons Private Ltd (TSL) for US$37.66mil cash.

The transaction, which was completed on Dec 31,2020, reduced AirAsia Group’s interest in AAI to 16.33%, which it held through its wholly owned subsidiary AirAsia Investment Ltd (AAIL).

AAI is a joint venture (JV) between TSL and AirAsia Group.

AirAsia Group president (airlines) Bo Lingam said: “This transaction is in line with our initiatives towards reducing cash utilisation for the group and will allow us to use cash to grow market share in our core markets in Asean, particularly in Malaysia, Thailand, Indonesia and the Philippines as well as for our future expansion into Cambodia, Myanmar and Vietnam.”

“This transaction will ensure strict cost containment for AirAsia Group in the short term, and strengthen our presence in Asean, while continuing our market dominance for travel from Asean to India and North Asia, ” he explained.

“India will remain an important market for AirAsia. TSL has been an excellent partner and we look forward to continue working closely together in other areas of growth.”

Headquartered in Bengaluru, AAI flies to 19 domestic destinations across India with 30 Airbus A320 aircraft.

The reduction of AirAsia Group’s stake in AAI had been viewed positively by analysts, as the transaction would raise the much-needed cash for the low-cost carrier.

06/01/21 Star

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