Skift Take
The Indian aviation stake sale is on, as now Air Asia is on the hunt on its own, joining Emirates, Etihad and Qatar who are mostly interested in buying stakes in current Indian players.
AirAsia plans to launch an Indian airline with local partnership as the desire to earn share in one of Asia’s biggest aviation markets trumps fears of a hypercompetitive industry full of bureaucratic obstacles.
AirAsia will hold 49% in the venture…it has broached the issue with Videocon Group and the talks are at a preliminary stage.
Founder Tony Fernandes’ interest in India adds an intriguing twist to the scrappy battle for market share in India between low-fare airlines IndiGo and SpiceJet, the state-owned Air India, and Jet Airways, which has full-service and low-fare options. Heavy debt and a cut-throat price war had savaged the balance sheets of many airlines.
Skift India Report
The Skift India Report is your go-to newsletter for all news related to travel, tourism, airlines, and hospitality in India.
Have a confidential tip for Skift? Get in touch
Photo credit: Air Asia 737 PK-AWC in Kuching, Malaysia. Simon Clancy / Flickr.com