Tata-owned Air India proposes to acquire AirAsia India

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Tata-owned Air India has reached out to the anti-trust regulator Competition Commission of India (CCI) for the merger of its low-cost subsidiary AirAsia India. AirAsia India, a low-cost Indian carrier, is run by the Tata Group. Presently, Tata Sons holds 83.67 per cent of the company. The remaining 16.33 per cent of the company is owned by AirAsia Investment Ltd (AAIL), which is part of Malaysia's AirAsia Group.

Air India Ltd (AIL) and its subsidiary Air India Express were acquired by Talace Private Limited, a wholly-owned subsidiary of Tata Sons Private Ltd, last year. "The proposed combination relates to the acquisition of the entire equity share capital of AirAsia India Private Limited by Air India Ltd- an indirect wholly-owned subsidiary of Tata Sons Private Limited (TSPL). At present, TSPL holds 83.67 per cent of the equity share capital of Air Asia India," the filed notice with the CCI stated.

"The Proposed Combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, irrespective of the manner in which the relevant markets are defined," it stated. Tata Sons formally took over Air India on January 27, 69 years after the government nationalised and took control of the airline from its original founder JRD Tata in August 1953.

It has now started the process of integrating four airlines under its belt. As part of this process, all the four airlines- Air India, Air India Express, Vistara, AirAsia India and ground handling firm Air India SATS Airport Services Private Limited (AISATS) will move to a single office. Sources close to the development have said that Tata has identified an office space in Gurugram, Haryana where it will lease 70,000 sq ft of office space. "It has been decided to shift various units under one roof in Gurugram in a phased manner to improve resources, enhance teamwork and create more coordination," sources said.

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