AirAsia likely to exit India ops, end JV with Tatas
PORTS & SHIPPING

AirAsia likely to exit India ops, end JV with Tatas

Malaysian airline Air Asia reported this week that it was reviewing its operations in India, which it runs in partnership with Tata Sons in the country. This signals a possible exit of the carrier from the fifth largest economy of the world. The airline had entered the country six years ago with considerable business expectations. The airline said that the Indian leg of their operations has been draining cash, further compounding their financial woes that already stand aggravated due to global travel restrictions that have been set in place courtesy of Covid-19.  

AirAsia holds 49% of the Indian unit, which has been unprofitable from the very beginning, while Tata Sons holds the remaining portion of 51%. The Malaysian carrier’s review of its operations in India comes on the heels of a bankruptcy filing by its Japanese arm. Citing highly challenging operating conditions, the airline ceased flying in Japan in the last month itself. 

AirAsia told the media that the group is witnessing substantial financial stress owing to its cash-drainingoperations in India and Japan. Citing the recent closure of AirAsia Japan, he said that they were pushed to review their investment in AirAsia India after having prioritised reducing cash burns, and cost containment during these times. 

  Tata Sons holds the power to exercise the first right of refusal for AirAsia’s minority stake in the India venture. Tata Sons is in discussions to buy out the Malaysian airline after the latter expressed their hesitation to pump fresh funds into the India joint venture. In FY2020, AirAsia reported a loss of Rs 317 crore.

Malaysian airline Air Asia reported this week that it was reviewing its operations in India, which it runs in partnership with Tata Sons in the country. This signals a possible exit of the carrier from the fifth largest economy of the world. The airline had entered the country six years ago with considerable business expectations. The airline said that the Indian leg of their operations has been draining cash, further compounding their financial woes that already stand aggravated due to global travel restrictions that have been set in place courtesy of Covid-19.   AirAsia holds 49% of the Indian unit, which has been unprofitable from the very beginning, while Tata Sons holds the remaining portion of 51%. The Malaysian carrier’s review of its operations in India comes on the heels of a bankruptcy filing by its Japanese arm. Citing highly challenging operating conditions, the airline ceased flying in Japan in the last month itself.  AirAsia told the media that the group is witnessing substantial financial stress owing to its cash-drainingoperations in India and Japan. Citing the recent closure of AirAsia Japan, he said that they were pushed to review their investment in AirAsia India after having prioritised reducing cash burns, and cost containment during these times.   Tata Sons holds the power to exercise the first right of refusal for AirAsia’s minority stake in the India venture. Tata Sons is in discussions to buy out the Malaysian airline after the latter expressed their hesitation to pump fresh funds into the India joint venture. In FY2020, AirAsia reported a loss of Rs 317 crore.

Next Story
Infrastructure Urban

Budget 2025: Key Highlights

On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 in Parliament. This marks the eighth budget by Sitharaman, making her the first finance minister in India’s history to present so many budgets. It is also the first budget of Prime Minister Narendra Modi’s third term.Sitharaman emphasised that the budget focuses on driving growth towards a “Viksit Bharat” (Developed India), with the country maintaining its position as the fastest-growing major economy. She outlined the government’s commitment to inclusive development, im..

Next Story
Infrastructure Urban

Budget 2025-26: Industry reactions

Union Finance Minister, Nirmala Sitharaman announced Budget 2025-26 today. The government has planned a number of strategic initiatives which will drive inclusive growth, boost economic growth and provide an impetus to to India’s competitive edge on the global stage.Here’s what industry has to say about various announcements and initiatives announced in the budget:Real Estate“The Union Budget 2025 is a game-changer, reinforcing India's commitment to inclusive and sustainable urban growth. The SWAMIH Fund 2 with Rs 15,000 crore will accelerate the completion of stalled housing projects, b..

Next Story
Infrastructure Urban

Budget 2025: Key Announcements Impacting Real Estate

Key takeaways for the real estate sector include:• Income tax relief for the middle class: The finance minister announced zero income tax for individuals earning up to Rs 12 lakh annually, providing a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50 per cent of existing provisions while introducing personal tax reforms and rationalising TDS and TCS regimes by streamlining rates and thresholds.• Tax benefits for residential property investors: Investors can now claim nil valuation for..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000