Sunday, March 07, 2021

Tata Sons to enhance shareholding in AirAsia India

Malaysian budget airline AirAsia Group on Saturday stated that plans are in the works to launch a flying-taxi business next year.

Air Asia CEO Tony Fernandes on Saturday said that the company is working on the project, and it would take about a year and a half to launch it. He made these statements at an online discussion as part of the Youth Economic Forum. 

Fernandes further said that the flying taxis will be powered by a quadcopter, and it will have as many as four seats.

With the COVID-19 pandemic proving to be detrimental to the aviation business, Air Asia has now branched into the digital space, launching a “super app” that offers services from travel and shopping to logistics and financial services, thus diversifying its revenue stream.

Meanwhile, Tata Sons will enhance its shareholding in a low-cost carrier -- AirAsia India -- by buying a 32.67 percent equity stake of its JV partner AirAsia Group Berhad.

The budget airline is a JV in which Tata Sons owns 51 percent stake, while 49 per cent is held with AAIL.

After the transaction, Tata's shareholding will go up to 83.67 per cent, while that of AAIL will come down to 16.33 percent.

In a regulatory filing made to Bursa Malaysia, AirAsia Group Berhad said the transaction via a share purchase agreement with Tata Sons was agreed by AAIL's Board.

Headquartered in Bengaluru, AAI flies to 19 domestic destinations across India with 33 Airbus A320 aircraft.

07/03/21 Arjit Saha/DNA

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