INSUBCONTINENT EXCLUSIVE:
Ending its uncomfortable journey in India after eight years, Malaysia-based AirAsia Group on Wednesday said it has exited AirAsia India by
selling its remaining 16.67 per cent stake to Tata Group-owned Air India for Rs 155.64 crore
Later in the day, Air India said it has begun the process of creating a single low-cost carrier subsidiary by merging AirAsia India and Air
A working group consisting AirAsia India CEO Sunil Bhaskaran and Air India Express CEO Aloke Singh has been formed for the two carriers'
integration, which is expected to take approximately 12 months, it added
Meanwhile, AirAsia Group said AirAsia India can use the "AirAsia" brand name for 12 months
AirAsia India has been making losses since its first commercial flight on June 12, 2014
Its net loss increased by 42 per cent to Rs 2,178 crore in FY22
much loved brand and presence." India will remain an important market for AirAsia and will continue to be served by our various airlines, he
AirAsia Group did not have a comfortable journey in India during the last eight years
It filed a criminal complaint in 2018 against Mittu Chandilya, who was CEO of AirAsia India from its birth to April 2016, alleging multiple
In May 2018, the Central Bureau of Investigation (CBI) filed a case against the AirAsia Group CEO Tony Fernandes and other group executives
for allegedly trying to manipulate government policies through corrupt means to get international license for AirAsia India
As a result, AirAsia India, even though it currently has 28 planes in its fleet, has been unable to launch international flights till date
More importantly, in a market that has extremely tough competitors like IndiGo and SpiceJet, AirAsia India has not been able to make any
According to aviation analytics company Cirium, AirAsia India has been operating 1,267 flights per week connecting 19 Indian cities in
Lingam said AirAsia Group "will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the
Asean-Indian market in logistics and passenger services to a far greater extent." In a statement to Malaysian stock exchange, AirAsia Group
said that the "brand license and technical services agreement" with AirAsia India "will be terminated after 12 months from the date of
termination of the shareholders agreement between the parties or at an earlier date" as per the decision of the latter
The Group said it "is expected to receive Rs 155,64,87,800 (Equivalent to USD 18.83 million or MYR89.25 million) in gross proceeds." After
winning the bid in October last year, the Tata Group took control of Air India on January 27
Campbell Wilson, CEO - MD, Air India, on Wednesday, said the creation of a single low-cost carrier "is a key step in the rationalisation and
transformation of Air India Group, and we will be working closely with the management teams and staff throughout the process".
