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.
As the fifth largest carrier in India, with a total market share of 5.7%, and the first foreign airline to establish a subsidiary in the country, AirAsia India (I5) had reported a remarkable growth in 2019 with total passengers carried boosted by 39%, strengthening its domestic position. AirAsia India has flown to 13 destinations pre-pandemic, with Bengaluru (BLR), Kolkata (CCU), Hyderabad (HYD), New Delhi (DEL) and Tiruchirappalli (TRZ) to name a few.