AirAsia will reduce its stake in the Indian joint venture with Tata Sons, with the latter increasing its share of the business to 87%.
That sees AirAsia’s stake fall to just 13%, according to Times of India.
The AirAsia India JV was established more than five years ago but has yet to turn a profit.
Cash-strapped AirAsia also ceased operations of its Japan joint venture recently and its Airasia X long haul subsidiary is undergoing a difficult restructuring to stay afloat.
Although the AirAsia India brand will continue for now, Tata is reportedly making various operational changes to the business.
It will launch a new booking website focused on the India market to differentiate it from AirAsia Group’s global booking site.
Tata also has a separate JV with Singapore Airlines to run full service carrier Vistara, and is the front-runner to take over ownership of Air India.
AirAsia India operates a fleet of 33 aircraft but only has a market share of about 7%.
Written by Ray Montgomery, Asia Editor
