TATA Sons is planning to divest its majority stake in AirAsia India, Indian financial daily Livemint reports.

The portal quoted sources as saying that Tata, which holds a 51% stake, plans on quitting AirAsia India as it has been bleeding money since 2014.

Sources said AirAsia Bhd had even approached Tata to sell the remaining 49%.

“Tata is not very keen on staying invested in AirAsia India. AirAsia’s Malaysian partner had approached Tata Sons to sell its 49% but Tata has not accepted the offer.

“In fact, the plan, which is in a preliminary stage, is to exit holding in AirAsia India and focus more on Vistara,” a source was quoted saying.

Vistara is an Indian domestic airline formed by a joint venture between the Tata group and Singapore Airlines. 

It has a greater share of the domestic market than AirAsia India’s 7.8%, placing the Malaysia-based carrier fifth among Indian airlines.

The article said Tata wanted to focus other money making ventures.

“Though there has been a greater focus on the airline’s performance by the shareholders, the airline hasn’t been able to achieve break-even yet,” a second person said, seeking anonymity.

AirAsia has been facing economic trouble from even before the Covid-19 pandemic devastated global civil aviation. 

The airline has retrenched staff and slashed the wages of top management. – July 13, 2020.