Indian conglomerate Tata Sons has not only rejected AirAsia Group's proposal to take over the Malaysian group's 49% stake in AirAsia India (I5, Bangalore International), but is also considering selling its own 51% stake in the low-cost carrier, Live Mint has reported.
According to the terms of the joint venture agreement, Tata Sons has the right of first refusal in the event AirAsia Group plans to exit the Indian venture. While the group did not officially confirm any such plans and even denied that it was considering it "for the time being", sources said that it had indeed offered its stake to Tata Sons.
However, the Indian conglomerate is unwilling to increase its stake in the loss-making LCC and could exit it altogether to focus on Vistara (UK, Delhi International), a full-service carrier in which it also owns a 51% stake (with Singapore Airlines Group holding the balance of shares).
Tata Sons was recently identified as the sole bidder for Air India (AI, Mumbai International).
