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Air India seeks to acquire entire equity of AirAsia India

By Saima Siddiqui 
Updated Date

New Delhi: Tata Sons owns 83.67 percent of Air Asia India’s equity share capital, while Malaysia’s AirAsia owns 16.33 percent of the company (Representative Image)

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Air India has suggested purchasing AirAsia India’s whole stake.

The proposal for Air India’s acquisition of AirAsia India has also been notified by the Competition Commission of India (CCI).

The proposed combination, according to the CCI notification, is the purchase of AirAsia India’s whole equity share capital by Air India under Sections 5(a)(i)(A) and 5(b)(i)(A) of the Competition Act, 2002. Tata Sons (TSPL) now owns 83.67 percent of Air Asia India’s equity share capital.

It further noted: “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.”

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Both airlines are controlled by Tata Sons, with Air India being a fully owned subsidiary and AirAsia India being a joint venture with Malaysia’s AirAsia, which owns 16.33 percent of the company.

Air India has submitted the relevant markets in terms of horizontal overlaps, according to the announcement. The market for domestic passenger air transport services in India, the market for domestic air cargo transportation services in India, and the market for charter flight services in India are the three markets mentioned.

It has also included the pertinent vertical overlap markets in its submission. These are the following:

— At the Bengaluru, Hyderabad, Delhi, Thiruvananthapuram, and Mangalore airports, the upstream market for ground handling services and the downstream market for passenger air transport services (including charter flight services); and the upstream market for cargo handling services at Bengaluru airport.

— At Bengaluru Airport, the upstream market for cargo handling services, as well as the downstream markets for air cargo transportation and charter flight services.

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— The downstream market for passenger air transport services (including charter flight services) in India, as well as the upstream market for in-flight food services.

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