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AirAsia Group has disposed 32.67% stake in its Indian operations to TATA sons ltd.
The Malaysia based low cost carrier has been badly affected by the on going COVID-19 pandemic and reported heavy losses year on year.
In a statement to Bursa Malaysia, the AirAsia said on Tuesday its unit AirAsia Investment Ltd (AAIL) sold its stake in AirAsia (India) Ltd (AAI) to Tata Sons Private Ltd, India for US$37.66mil or RM152.58mil. This brings its shareholding in AAI to just 16.33%.
“As India is a non-core market for AirAsia (being a non-Asean country), the company will continue to regularly re-assess its business strategies and dispose of non-core investments to augment its liquidity. This transaction will reduce cash burn of the company in the short term and allow AirAsia to concentrate on recovery of its key Asean markets in Malaysia, Thailand, Indonesia and the Philippines in the long run”. said the airline.
AAIL has also agreed to waive off unpaid brand license fees payable by AAI to AirAsia Bhd, a unit of the company, under the brand licence and technical services agreement dated Dec 30,2019 due to the Covid-19 pandemic.
Headquartered in Bengaluru, AAI flies to 19 domestic destinations across India with 30 Airbus A320 aircraft.