Mumbai, India (C.W.B.N.)_ Last Tuesday (29th December), the Tata Group announced it would raise its equity stake in AirAsia India – an Indian-based joint venture, from 51 percent to 84 percent. The move indicates the conglomerate expansion in the domestic aviation sector. During the Covid-19 pandemic, AirAsia, owned by Malaysian tycoon Tony Fernandes, has scaled down its services.
It was also reported that Tata also sent a proposal last week for ownership of the troubled national airline – Air India. For a while now, the government has been searching for a prospective purchaser to bid for the losing flight carrier. The Tata Group founded the airline back in 1932; however, the company sold its stake to the government in the 1950s.
For its increased stakes in AirAsia, the Tata Group is reportedly paying the carrier £30 million. The AirAsia India joint venture commenced back in 2014. This new arrangement places the Indian corporation in command of the airline. AirAsia has been seeking to reduce its financial losses while its division in Japan filed for bankruptcy last month.
