AirAsia sells its remaining shares to Tata Group-owned Air India

AirAsia Aviation Group Limited announced on Wednesday that it has entered into an agreement to sell the remaining equity shares held in AirAsia (India) Private Limited to Tata Group's Air India.

The share purchase agreement comes even as AirAsia is coming back to the skies stronger than ever after the pandemic.

In a press release, AirAsia said the pandemic allowed the company to review its strategic objectives to increase focus on the ASEAN region given its strong network and presence in the region.

“Since 2014 when we first commenced operation in India, AirAsia has built a great business in India, which is one of the world’s biggest civil aviation markets in the world. We have had a great experience working with India’s leading Tata Group. This is not the end of our relationship, but the beginning of a new one as we explore new and exciting opportunities to collaborate and enhance our synergies moving forward," AirAsia Aviation Group CEO Bo Lingam said.

He said reexamining its business during the pandemic period made the company realize that it was best suited for AirAsia to develop an ASEAN-only business.

"India will remain an important market for AirAsia and will continue to be served by our various airlines. We will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the ASEAN-Indian market in logistics and passenger services to a far greater extent," he said.