Capital A Berhad, formerly known as AirAsia Group Berhad, announced in a filing with Bursa Malaysia that it has agreed to sell its 16.33% ownership in AirAsia India to Air India for $18.83 million, or slightly more than Rs 155.6 crore.
In a statement released to the media, group CEO of AirAsia Aviation Group (AAGL), Bo Lingam said, “Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an ASEAN-only business.”
Bo stated that they would use their local airline operating experience and skills to expand the ASEAN-India market for logistical and passenger services. With a 5.9% market share, low-cost airline (LCC) AirAsia India is currently the fifth-largest airline in the nation. According to information provided by the aviation watchdog, the Directorate General of Civil Aviation, the carrier had claimed a load factor of 77% in September (DGCA). AAGL was the first to start an airline subsidiary in India, and operations began in June 2014.
Broadly hinting at the future, an elated Wilson said, “We are excited to initiate the creation of a single Air India Group low-cost carrier. This is a key step in the rationalization and transformation of the group.”
AirAsia has also never reported a profit since beginning operations in the fourth-largest market in the world in June 2014. The LCC’s expenses grew to Rs 4,092 crore from Rs 3,015 crore and losses to Rs 2,179 crore from Rs 1,532 crore in FY2022, despite total income rising to Rs 1,914 crore from Rs 1,483 crore in FY2021.
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