AirAsia India (Bengaluru International) has received a INR5 billion rupee (USD72 million) capital injection to finance its upcoming international expansion as Tata Group increased its stake in the airline to 51%, The Economic Times has reported.
Until recently, Tata Group and AirAsia Group each held a 49% stake in the carrier with the remaining 2% owned by Tata Trusts managing partner R Venkataramanan and group executive S Ramadorai. Following the change in the shareholders' structure, the airline is now majority-controlled by Tata Group with a 51% stake. AirAsia Group continues to own a 49% stake.
The injection was financed proportionately by the low-cost carrier's two remaining shareholders.
In November 2018, Tata Group installed Sunil Bhaskaran as AirAsia India CEO. Previous CEOs were picked by AirAsia Group.
The LCC applied to the Indian government for a permit to operate international routes in January 2019. It expects to receive the clearance in May.
Recently, Tata Group also injected INR4.6 billion rupees (USD66.3 million) into Vistara (UK, Delhi International), another joint-venture in which it controls a 51% stake. Tata's partner in Vistara is Singapore Airlines. Vistara is also gearing up for international expansion.
