Tata Group Approaches CCI for Merger of Air Asia India

Tata Sons-owned Air India has urged the Competition Commission of India (CCI) to seek the merger of its low-cost subsidiary, AirAsia India. The two merged companies will have a 15.7% share of the passenger market in India. Air India Express, a subsidiary of Air India, does not operate in the domestic market and only flies between India and the Gulf route.

Tata Sons increased its stake in AirAsia India to 83.67% in December 2020 and will complete the acquisition of the remaining 16% stake in Malaysia Airlines Group's AirAsia Berhad by the end of this month.

However, the integration of Vistara's business with Air India will take longer as negotiations are underway with Singapore Airlines, which owns 49% of the joint venture. Tata Sons, which took over Air India in January, has begun the process of consolidating four airlines under it. As part of this process, all four airlines, Air India, Air India Express, Vistara, AirAsia India, and ground handling company AISATS, will be relocated to one office.

Air India shifted its headquarters from the iconic Nariman Point Building in Mumbai in 2013 to Central Delhi. Its low-cost subsidiary Air India Express is based out of Kochi. AirAsia India is based out of Bengaluru and its joint venture with Singapore Airlines, Vistara is based out of Gurgram.