Tata eyes exit from AirAsia JV amid turbulence
Tata Sons Ltd is plotting an exit from loss-making AirAsia India where it holds a majority stake, said two people with direct knowledge of the matter.
Tata Sons, the holding company of the Tata group, has a 51% stake in AirAsia India. Malaysia’s AirAsia Bhd owns the remaining 49%. The budget airline had a 7.8% share of the domestic market in May, placing it in the fifth position.
AirAsia Bhd, which is facing headwinds due to airline industry disruptions from Covid-19, had in June approached the Tata group to sell its stake, as mandated by the terms of the joint venture (JV) under which Tata Sons has the right of first refusal, one of the two people cited above said.
“The offer was, however, turned down by Tata Sons, which is not keen to continue investing in the airline and wants to focus on its full-service carrier ,Vistara, which it jointly owns with Singapore Airlines as the minority partner,” the person said, requesting anonymity.