The Competition Commission of India (CCI) approves acquisition of entire shareholding in Air Asia India by Air India 

The proposed combination envisages the acquisition of the entire equity share capital of AirAsia (India) Private Limited (Air Asia India) by Air India Ltd. (AIL), an indirect wholly owned subsidiary of TSPL. At present, TSPL holds 83.67% of the equity share capital of Air Asia India.

AIL, along with its wholly-owned subsidiary, Air India Express Limited (AIXL), is primarily engaged in the business of providing (a) domestic scheduled air passenger transport service, (b) international scheduled air passenger transport service, (c) air cargo transport services in India, and (d) charter flight services in India.

Air Asia India is a joint venture between TSPL and Air India Investment Limited (AAIL) with TSPL presently holding 83.67% and AAIL holding 16.33% of the shareholding. Air Asia India operates under the brand name “AirAsia”. It is engaged in the business of providing the following services: (a) domestic scheduled air passenger transport service, (b) air cargo transport services, and (c) charter flight services in India. AirAsia India does not provide scheduled air passenger transport services on international routes.

Detailed order of the CCI will follow.

Merger clearance: acquisition of AirAsia India by Air India consolidates domestic airline operations and related services. The Competition Commission of India approved Air India Ltd.'s acquisition of the entire equity share capital of AirAsia (India) Private Limited, consolidating shareholding and aligning airline operations under Air India's corporate group. Air India and its subsidiary operate domestic and international scheduled passenger services, air cargo and charter services; AirAsia India operates domestic scheduled passenger, air cargo and charter services but not international scheduled passenger routes. A detailed CCI order will follow.