Air Asia to sell 33 pc in local JV to partner Tata

In an stock exchange filing, Malaysian budget airline AirAsia Group Bhd has said that it plans to sell 32.67 per cent of its stake in its Indian operations to Tata Sons for $37.7 million.

The announcement comes two months after AirAsia shut its operations in Japan, citing highly challenging conditions amid the pandemic.

The airline, which previously owned 49 per cent of Air Asia India as part of a joint venture with Tata Sons, said that the sale would allow the company to focus on its recovery in its key South East Asian markets amid the impact of the COVID-19 pandemic on travel.

 “The directors having considered the rationale for the transaction and after careful consideration, are of the opinion unanimously that the transaction is in the best interest of AirAsia and its shareholders,” the Airline officials said.

AirAsia has been cutting back its investment in AirAsia India as the group continues to face financial difficulties.