Malaysia’s Air Asia group has indicated that it may exit its joint airline service company in India.
Air Asia Group of Malaysia has indicated to consolidate business from India. The group has said that it is reviewing its investment in Air Asia India, the airline that provides cheaper services. Air Asia told that the company’s cash is drowning in it and due to this the financial burden on it is increasing.
Air Asia Group said, “We are confident that under the present circumstances, we will be able to recover more strongly and faster than our other competitors in the world.” But flights have started from Wednesday. This includes flights from Chennai to Ahmedabad and Goa, Mumbai to Visakhapatnam and Goa and Jaipur to Kolkata.
Crisis in japan too
Air Asia Group said that it is more concerned about its business in Japan and India. Air Asia Group Chairman (airline) Bo Lingam said in a statement that our companies have similar status in both these places. He said that the group is giving priority to reducing its cost in these markets and overcoming the sinking cash money.
Tata group local partner
The Tata group is a local partner in Air Asia India. Tata Sons has a 51 per cent stake in Air Asia India. Last month, news came that Tata was considering buying a 49 per cent stake in the Malaysian partner. If this happens, Tata Sons will own a 100 per cent stake in AirAsia. Air Asia has a market share of 6.8 per cent in India’s airline sector. At the same time, the number of employees in the country is more than 3,000.
Business challenge increased
For more than six years this company has been facing a challenge in business for some time. The airline business has been badly hit by the Kovid-19 and lockdown. Air Asia India is headquartered in Bengaluru. It operates flights to 19 destinations in the country. It has 31 Airbus A320 aircraft in its fleet. It started operations on 12 June 2014.