AirAsia sells remaining equity shares in AirAsia India to Air India, strengthening its focus on Asean
SEPANG, 2 NOVEMBER 2022 - AirAsia Aviation Group Limited (“AAAGL”), the holding company of Capital A's airline group, today announced it has entered into a share purchase agreement to sell the remaining equity shares held in AirAsia (India) Private Limited (“AAI”) to Air India Limited, an affiliate of Tata Sons Private Limited (“TSL” or “Group”).
The latest agreement comes as AirAsia returns to the skies stronger than ever since the pandemic which allowed the airline to re-examine its strategic objectives to focus on Asean given its strong network and significant presence in the region. To date, AirAsia has flown more than 171,000 flights since January 2022, carrying over 23 million passengers across the Group.
Group CEO of AirAsia Aviation Group Bo Lingam said, “Since 2014 when we first commenced operation in India, AirAsia has built a great business in India, which is one of the world’s biggest civil aviation markets in the world. We have had a great experience working with India’s leading Tata Group. This is not the end of our relationship, but the beginning of a new one as we explore new and exciting opportunities to collaborate and enhance our synergies moving forward.
“Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines– in Malaysia, Thailand, Indonesia and the Philippines– with a much loved brand and presence. India will remain an important market for AirAsia and will continue to be served by our various airlines. We 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 tandem with the reopening of Malaysia’s international borders in April this year, AirAsia Malaysia (AK) has reinstated its flight connectivity to key destinations in India and more from Malaysia, offering guests from both countries attractive deals and promotions to experience India’s monuments, serene lakes, majestic mountains and many more.
AirAsia India currently flies to 18 destinations with a market share of 5.9%.
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About AirAsia Aviation Group Limited
AAAGL is the holding company under Capital A (formerly AAGB) for its group of airlines and airline investments portfolio companies. Underpinned by a relentless pursuit of operational excellence as the world’s leading low cost carrier, AAAGL maintains a continued focus on cost and is committed to delivering the best value across all portfolio businesses. Other portfolio companies in the AAAGL group include AirAsia Consulting, the food and beverage restaurant division, Santan as well as AirAsia SEA - the shared services corporate division. GTR completes the airline group ecosystem, providing industry leading ground services capabilities for not only AirAsia, but also to third party airlines. The airlines within the group have used the downtime in flying over the past two years to put in place a robust platform to return to the skies leaner and stronger. The introduction of numerous contactless procedures will make flying not only safe and affordable but also more contactless and hygienic than ever before including contactless check in via the airasia Super App and revolutionary facial recognition technology (FACES).