The Competition Commission of India approved Air India’s proposed acquisition of Tata group’s entire 83.67 per cent stake in AirAsia India. The approval gives a boost to the group’s plans of merging the two airlines.
At present, the Tata group owns and operates four airlines — Air India, Air India Express, AirAsia India, and Vistara. Air India and Vistara operate on both domestic and international routes. AirAsia India does not fly abroad, while Air India Express operates solely on international routes.
Air India and AirAsia have a combined market share of 13 per cent in India. While the group plans to merge AirAsia India with Air India Express (which is an Air India subsidiary), it has not taken a decision on bringing Vistara into its fold.
“Air India will be our flagship airline company…I do not want to comment on Vistara now,…