AirAsia completes exit from India JV

SEPANG, 2 Nov 2022:

AirAsia Aviation Group Ltd, the holding company of Capital A’s airline group, has exercised its right to sell the remaining stake in AirAsia (India) Private Ltd – completing the sale process that was begun back in 2022 during the height of the Covid-19 pandemic restrictions.

On 29 Dec 2020, the initial share sale agreement was for 32.67% equity interest in AirAsia India to Tata Sons Private Ltd – which already owned 51% interest – for US$37.66 million.

That deal also included either a call or put option for the remaining stake held by AirAsia Aviation – with the put option exercisable by 31 Dec 2022.

AirAsia Aviation Group CEO Bo Lingam said in a statement: “Covid-19 has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines – in Malaysia, Thailand, Indonesia and the Philippines.

“India will remain an important market for AirAsia and will continue to be served by our various airlines.”

2020 also saw AirAsia exit its Japanese operations due to the tough operating conditions as a result of Covid-19.