Indian conglomerate Tata Group could become AirAsia India's controlling shareholder, sources familiar with developments have told India's Economic Times.
The low-cost carrier is currently owned by AirAsia Group (49%) and Tata Group (49%). Chairman S Ramadorai owns 0.5% and non-executive director R Venkataramanan, who is also CEO of Tata Trusts, holds 1.5%.
Speaking on condition of anonymity, the sources said Tata Group's board had discussed acquiring Ramadorai and Venkataramanan's stakes which would then give it a commanding 51% shareholding. No deadline for the closure of the deal was set, said one of the sources.
Tata Group already controls a 51% stake in Vistara (UK, Delhi International) with Singapore Airlines (SQ, Singapore Changi) owning the remaining 49%.
For its part, AirAsia India has been embroiled in several scandals this year. In May, India's Central Bureau of Investigation (CBI) said it had registered a case against the LCC for colluding with the former United Progressive Alliance (UPA) government to alter India's "5/20" rules and, at the same time, violate effective-control regulations. It also claimed it had bribed civil servants in return for the granting of an Air Operator's Permit (AOP) as well as an international scheduled air transport service licence.
AirAsia Group later denied the CBI's accusations and contentions, claiming them to be "trumped up" and "baseless".
