KUALA LUMPUR: AirAsia Aviation Group Ltd has entered into a share purchase agreement to sell the remaining equity shares held in AirAsia (India) Pte Ltd to Air India Ltd, an affiliate of Tata Sons Pte Ltd.
In a statement, the company said the latest agreement comes as AirAsia has made its return stronger than ever since the pandemic, which has allowed the airline to focus on ASEAN given its strong network and significant presence in the region.
AirAsia has flown more than 171,000 flights since January 2022, carrying over 23 million passengers across the company.
AirAsia Aviation Group chief executive officer Bo Lingam said AirAsia had built a great business in India since it first commenced operation in the country in 2014.
"We have had a great experience working with India's leading Tata Group.
"This is not the end of our relationship, but the beginning of a new one as we explore new and exciting opportunities to collaborate and enhance our synergies moving forward," he said.
He added that Covid-19 has allowed the airline to re-examine its priorities, where it is best suited to develop an ASEAN-only business.
"India will remain an important market for AirAsia and will continue to be served by our various airlines.
"We will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the ASEAN-Indian market in logistics and passenger services to a far greater extent," said Bo.
With Malaysia's international borders reopening in April this year, AirAsia Malaysia has reinstated its flight connectivity to key destinations in India and more from Malaysia.
As the fifth largest carrier in India, with a total market share of 5.7 per cent, and the first foreign airline to establish a subsidiary in the country, AirAsia India reported a remarkable growth in 2019, with total passengers carried increased by 39 per cent, strengthening its domestic position.
AirAsia India has flown to 13 destinations pre-pandemic, including Bengaluru, Kolkata, Hyderabad, New Delhi and Tiruchirappalli, to name a few.