AirAsia Group Berhad announced the disposal of 32.67% of its equity shares in AirAsia (India) Limited (AAI) held by the Group’s wholly-owned subsidiary, AirAsia Investment Limited (AAIL).
This brings its shareholding in AAI to 16.33%.
President (Airlines) of AirAsia Group, Bo Lingam said, “This transaction is in line with our initiatives towards reducing cash utilisation for the Group and will allow us to use cash to grow market share in our core markets in Asean, particularly in Malaysia, Thailand, Indonesia and the Philippines as well as for our future expansion into Cambodia, Myanmar and Vietnam.
“AirAsia Group has been reviewing its forward business strategy regularly, including its investment in AAI. This transaction will ensure strict cost containment for AirAsia Group in the short term, and strengthen our presence in Asean while continuing our market for travel from Asean to India and North Asia.
“India will remain an important market for AirAsia. TSL has been an excellent partner and we look forward to continue working closely together in other areas of growth.”
Headquartered in Bengaluru, AAI flies to 19 domestic destinations across India with 30 Airbus A320 aircraft.
Meanwhile, international services to India from Malaysia and Thailand will resume in the future after travel restrictions are lifted and borders with India are reopened. AirAsia flies over 100 weekly flights from Malaysia and Thailand to nine destinations in India.
AirAsia Group has transformed into a digital travel and lifestyle platform with airasia.com as well as digital ventures in logistics, e-commerce, fintech and fast food chain, among others. AirAsia Group also operates a regional technology centre in Bengaluru, India.
