Tata Sons likely to become AirAsia India’s largest shareholder

Low-fare airline AirAsia India could soon see a change in ownership structure as the Tata group is in discussion to increase the conglomerate's stake in the airline.

"There are discussions going on (between Tata Sons and AirAsia India) and I know the Tatas are keen to increase stake. They are happy with AirAsia's performance," an Economic Times report quoted senior executive at AirAsia Berhad as saying.

Requesting anonymity, a person familiar with the developments told The Economic Times: Tata Sons will likely acquire private investor Arun Bhatia's shares, reducing his holding to a "bare minimum."

Currently, the Tatas own 30% stake in AirAsia India while AirAsia Berhad owns 49%. Arun Bhatia holds rest of the stake through his investment holding company, Telestra Tradeplace.

When ET approached Bhatia to know more about this latest news, he said: "If the Tatas want to buy, I am ok to sell", without revealing much detail.

If the news reports come true, this step will be a surprise to industry watchers who have been wondering about the Tata Group's future intentions with its two airline ventures in India.

Beside AirAsia India, Tata Sons owns 51% in Vistara, a joint venture with Singapore Airlines in which the latter owns 49%.

These airline ventures are seen as a realisation of Tata Sons chairman emeritus Ratan Tata's dreams of making it big in the Indian aviation industry.
(Image: www.bangaloreaviation.com)