Aviation

Tata Sons looking to end partnership with AirAsia: report

Updated : November 16, 2018 11:10 AM IST

According to ET, talks have already begun to end the partnership.

Currently, the conglomerate owns 51 percent of AirAsia India and the remaining is held by AirAsia Bhd.

Tata Sons looking to end partnership with AirAsia: report

Tata Sons is likely to end its partnership with AirAsia Bhd as it looks to be engaged only in Vistara, its joint venture with Singapore Airlines (SIA), The Economic Times reported, citing sources.

According to ET, talks have already begun to end the partnership even as the company focuses on another deal with Jet Airways to acquire ownership stake.

The group's holding company is proposing to “exit AirAsia India and run the only full-service private airline in India, which is Vistara-plus-Jet,” sources told the paper. Currently, the conglomerate owns 51 percent of AirAsia India and the remaining is held by AirAsia Bhd.

Also read: What Vistara and Jet Airways merger means for Indian aviation

However, the probe by Central Bureau of Investigation (CBI) into alleged lobbying and irregular transactions by AirAsia Bhd CEO Tony Fernandes and other AirAsia executives can make it difficult for the airline to find buyers, said the report.

“With the cases against him, it is getting increasingly difficult for Tony to do business in India,” sources told the paper. “But he won’t leave without getting a good value for his airline’s stake.”

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