Malaysian budget airline AirAsia Group plans to sell 32.67% of its stake in its Indian operations to majority shareholder Tata Sons for $37.7 million. The Tata sons will hold an 83.67 percent stake post the deal, while AirAsia’s stake will be squeezed to approximately 13 percent stake. The development comes after AirAsia suffered huge financial loss amid the COVID-19 pandemic.
The Malaysian budget airline said: “As India is a non-core market for AirAsia (being a non-ASEAN country), the Company will continue to regularly reassess its business strategies and dispose of non-core investments to augment its liquidity. This transaction will reduce the cash burn of the Company in the short term and allow AirAsia to concentrate on the recovery of its key ASEAN markets in Malaysia, Thailand, Indonesia, and the Philippines in the long run,” it added.