- Joe Breitfeller
AirAsia Reduces Stake in AirAsia India by Nearly 33 Percent
AirAsia Group Berhad has disposed of 32.67% of its equity stake in AirAsia India Limited held by the Group’s wholly-owned subsidiary, AirAsia Investment Limited, lowering their stake in the Indian subsidiary to 16.33%.
On Tuesday (December 29, 2020), AirAsia Group Berhad (AirAsia) announced the disposal of a 32.67% equity stake in AirAsia India Limited (AAI), held by the Group’s wholly-owned subsidiary, AirAsia Investment Limited (AAIL). The equity reduction lowers the company’s stake in AirAsia India to 16.33%. Headquartered in Bengaluru, AirAsia India serves 19 domestic destinations across India with a fleet of 30 Airbus A320s. In Tuesday’s announcement, AirAsia Group’s President, Bo Lingham, said in part,
“This transaction is in line with our initiatives towards reducing cash utilization for the Group and will allow us to use cash to grow market share in our core markets in Asean, particularly in Malaysia, Thailand, Indonesia and the Philippines as well as for our future expansion into Cambodia, Myanmar and Vietnam. AirAsia Group has been reviewing its forward business strategy regularly, including its investment in AAI. This transaction will ensure strict cost containment for AirAsia Group in the short term and strengthen our presence in Asean while continuing our market dominance for travel from Asean to India and North Asia. India will remain an important market for AirAsia...”
AirAsia’s international services to India from Malaysia and Thailand will resume once travel restrictions are lifted and borders with India reopen. The carrier typically operates over 100 flights weekly from Malaysia and Thailand to nine destinations in India. The AirAsia Group has transformed into a digital travel and lifestyle platform with ventures in logistics, e-commerce, fintech and a fast food chain, among others. The company also operates a regional technology center in Bengaluru, India.
Source: AirAsia Group Berhad