Airliners-India

747-237 · Posted: Fri Feb 28, 2020 11:22 am Post subject:

Air Asia India has added a pre-owned A320 to the fleet, as VT-VNS.
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5Patel · Member Joined: 02 Oct 2014 Posts: 115

https://travelobiz.com/airasia-may-eventually-exit-india-jv-report/

AirAsia may eventually exit India JV: Report

AirAsia Group Bhd group chief executive officer (CEO) Tan Sri Tony Fernandes hinted that the budget airline may exit its India joint venture (JV) because India is deemed a peripheral market for the group.

“We would never say that we would never exit India,” Fernandes was quoted as saying in a Credit Suisse report.

The Asean region is a core market for the airline, while India and Japan are peripheral markets, Fernandes said during a global call arranged by Credit Suisse.

He shared that they have a good partner in Tata and are looking for an international licence.

There has been market share gain in this resumed phase of flying (from 25 May),” Credit Suisse said in a report on 22 June.

“However, Air Asia said that it is not thinking of adding any new planes for a quite a while. Air Asia seemed to believe that oil prices can stay low for a long while (a lot of oil) and, thus, there are limited gains from a 15% fuel saving in a low oil price environment,” the report said.

“Air Asia seemed willing to take second-hand capacity if need be rather than go for a new plane.”

According to AirAsia Group’s annual report, the group owns a 49% stake in Airasia India.

News reports today cited the Credit Suisse report yesterday, which quoted Fernandes as saying during a global conference call organised by Credit Suisse that AirAsia had a good partner in Tata and they were looking for an international licence.

It was reported that an AirAsia India spokesperson was not available for comments.

The_Goat

iah87 · Member Joined: 17 Apr 2007 Posts: 2557

If Tatas bid for AI is successful, then they will have Vistara and Air India. Will they be merged ? A merger with AI can be messy due to different pension obligations and benefits.

Air Asia will have to go for sure, Tatas will not be able to handle 3 airlines. Even now Tatas should be looking at offloading their share in Air Asia.

iah87 · Member Joined: 17 Apr 2007 Posts: 2557

https://www.channelnewsasia.com/news/business/airasia-trading-halt-12912720

Air Asia's shares plunge after a going concern warning. In the article it says that Air Asia has not been successful in India and Japan.

How will this affect its Indian ops. It looks like Air Asia wants to exit India and Japan. If it wants pull out, wonder what Tatas will do, buy them out if it is cheap or hope some other investor comes along to share the risk.

747-237 · Posted: Sat Jul 18, 2020 8:40 am Post subject:

https://www.ch-aviation.com/portal/news/93242-tata-sons-mulls-airasia-india-exit

Tata Sons mulls AirAsia India exit

17.07.2020

Indian conglomerate Tata Sons has not only rejected AirAsia Group's proposal to take over the Malaysian group's 49% stake in AirAsia India (I5, Chennai), but is also considering selling its own 51% stake in the low-cost carrier, Live Mint has reported.

According to the terms of the joint venture agreement, Tata Sons has the right of first refusal in the event AirAsia Group plans to exit the Indian venture. While the group did not officially confirm any such plans and even denied that it was considering it "for the time being", sources said that it had indeed offered its stake to Tata Sons.

However, the Indian conglomerate is unwilling to increase its stake in the loss-making LCC and could exit it altogether to focus on Vistara (UK, Delhi Int'l), a full-service carrier in which it also owns a 51% stake (with Singapore Airlines Group holding the balance of shares).

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747-237 · Posted: Wed Aug 05, 2020 6:48 am Post subject:

https://www.ch-aviation.com/portal/news/93904-airasia-india-seeks-40mn-tata-mulls-buy-out

AirAsia India seeks $40mn, Tata mulls buy-out

05.08.2020

AirAsia India shareholders Tata Sons and AirAsia Group have agreed to inject INR3 billion rupees (USD40 million) into the low-cost carrier through optionally convertible debentures as talks progress over ownership changes, The Economic Times has reported.

While AirAsia Group has never confirmed these talks, it is reportedly open to selling its 49% stake in the Indian venture to Tata Sons. Given the slump in the carrier's financial situation, already precarious before the pandemic, the Malaysian group has lowered its expected price to just USD50 million.

The LCC reportedly needs further recapitalisation but AirAsia Group, itself in a tough financial predicament, is unable to bankroll the Indian unit any more.

Tata Sons, one of India's largest multi-industry conglomerates, is eager to conclude talks about the future of AirAsia India as soon as possible, before the August 31 deadline for bids in the ongoing privatisation of Air India, Business Standard added. Tata Sons is the frontrunner for the acquisition of the flag carrier but would likely partner with financial investors, who, in turn, would prefer to have clarity about the future of Tata's other airlines in India.

AirAsia India currently operates thirty A320-200s, the ch-aviation fleets advanced module shows.

Tata Sons has also agreed with its joint venture partner Singapore Airlines Group to recapitalise full-service carrier Vistara. The two shareholders will together inject INR750 million (USD10 million) through fresh equity shares.
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iah87 · Member Joined: 17 Apr 2007 Posts: 2557

How many airlines can Tata operate. Vistara, Air Asia and now bidding for Air India. That is one too many. It needs to do something about Air Asia, buy the shares from the Malaysian group for a low price and merge with Vistara or just let it go and shut down.

I still think Tata will not offer a good price for Air India, then what will GoI do. The GoI should rethink this bidding now, and postpone it further.

iah87 · Member Joined: 17 Apr 2007 Posts: 2557

https://www.yahoo.com/finance/news/airasia-problems-grow-india-minister-052603035.html

We have been hearing about Air Asia's parents woes and its plans to sell or shut down operations in India. The above article is reinforcing that situation. Its continued operation is in doubt and Tatas should make a decision soon.

justbala · Member Joined: 11 Jan 2007 Posts: 1895 Location: Bangalore

https://www.bangkokpost.com/business/1996959/airasia-ceases-operations-in-japan-as-covid-19-wipes-out-travel

AirAsia Group Bhd will cease operations in Japan immediately as it tries to reduce cash burn amid the coronavirus outbreak that’s wiped out travel demand globally.

AirAsia Japan has stopped operations as of Monday, Southeast Asia’s second-biggest budget carrier said in a statement. That will help the parent conserve cash. Further steps on the decision will be made in accordance with applicable laws and regulations including the Japan Civil Aeronautics Act, it said.

The_Goat · Posted: Fri Oct 09, 2020 1:13 am Post subject:

747-237 · Posted: Wed Oct 21, 2020 7:03 am Post subject:

Air Asia India has added a new A320NEO (it's first) to the fleet, as VT-ATD.
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747-237 · Posted: Fri Nov 27, 2020 6:44 am Post subject:

Air Asia India has added a new A320NEO to the fleet today, as VT-ATE.
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747-237 · Posted: Thu Dec 03, 2020 6:06 am Post subject:

https://www.ch-aviation.com/portal/news/98040-airasia-india-plans-more-a320neo-despite-uncertainty

AirAsia India plans more A320neo despite uncertainty

02.12.2020

Despite speculation about its uncertain future and the ongoing strategic review at AirAsia Group, AirAsia India (I5, Bangalore Int'l) is planning to add a further three A320-200Ns by mid-2021, PTI news agency has reported.

"We will be inducting our third Airbus A320-200neo in December, and we look forward to inducting our fourth and fifth A320neo by June 2021," the airline's spokesperson said.

The Indian low-cost carrier took delivery of its first A320neo, VT-ATD (msn 10037), in October 2020. The aircraft is currently plying the 2x daily Bangalore Int'l-Guwahati route, Flightradar24 ADS-B data shows. The second unit of the type, VT-ATE (msn 9525), was delivered to Delhi Int'l on November 27 but has yet to enter into revenue service.

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747-237 · Posted: Fri Dec 11, 2020 6:16 am Post subject:

Air Asia India has added a new A320NEO to the fleet today, as VT-ATG.
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5Patel · Member Joined: 02 Oct 2014 Posts: 115

https://indianexpress.com/article/business/aviation/tata-sons-acquire-32-67-airasia-india-37-66-mn-stake-7125258/

Tata Sons to buy 32.67% stake in AirAsia India for $37.66 million

December 30, 2020

In a move that is being pegged as the first step in consolidation of Tata Group’s aviation portfolio, Tata Sons will purchase 32.67 per cent stake in AirAsia India from Malaysian AirAsia Group Bhd, taking its holding in the joint-venture airline up to 83.67 per cent. In a filing to the Malaysian stock exchanges, the AirAsia Group said that the deal, which is worth $37.66 million, will see its share in the Indian budget airline go down to 16.33 per cent.

As of date, AirAsia held a 49 per cent stake in AirAsia India, while Tata Sons held 51 per cent. In addition to this, Tata Sons also owns 51 per cent stake in full-service airline Vistara, the rest of which it is owned by Singapore Airlines. Tata Sons also placed an expression of interest in the ongoing disinvestment process of Air India. In June, AirAsia had approached the Tata Group to sell its stake, as mandated by the terms of the joint-venture, according to which Tata Sons has the first right to buy out the stake. The Malaysian company, led by Tony Fernandes, had stopped funding the Indian venture following the Covid19-led slump in aviation businesses. In November, AirAsia said it was reviewing its India and Japan businesses.

Elaborating on the rationale of selling a significant part of its stake in AirAsia India to Tata Sons, the Malaysian firm said in the stock exchange filing: “Since the start of the pandemic, the aviation industry has been one of the hardest hit industries. Airlines around the world have cancelled flights and grounded planes and AirAsia India is no exception. Due to this, the directors expect further capital requirements for AirAsia India. As India is a non-core market for AirAsia (being a non-ASEAN country), the company will continue to regularly re-assess its business strategies and dispose of non-core investments”.

“This transaction will reduce cash burn of the company in the short term and allow AirAsia to concentrate on recovery of its key ASEAN markets in Malaysia, Thailand, Indonesia and the Philippines in the long run,” it added. The airline group exited its Japan business earlier this year.

Tata Sons did not offer a comment on the development.

The deal values AirAsia India at $115.27 million. For the month of November, the airline had 6.6 per cent market share in India’s domestic air traffic, while the country’s largest airline IndiGo had 53.9 per cent share. AirAsia India’s revenues fell 69 per cent in the September-quarter. While its losses for the June-quarter weren’t disclosed, in the January-March period for 2020, its losses deepened to Rs 332 crore, from Rs 15 crore a year ago.

Pointing out that the India venture has been a loss-making one, AirAsia said: “The share of losses over the years have resulted in the carrying value of the investment at the date of transaction to be nil.”

747-237 · Posted: Sat Jan 09, 2021 7:43 am Post subject:

https://www.ch-aviation.com/portal/news/99292-tata-sons-may-merge-airasia-india-and-vistara-report

Tata Sons may merge AirAsia India and Vistara

08.01.2021

A merger between AirAsia India (I5, Bangalore Int'l) and Vistara (UK, Delhi Int'l) is one of the options their conglomerate parent Tata Sons is considering, having set up a strategy team headed by group chief financial officer Saurabh Agrawal to explore various possible solutions such as mergers and rebranding its airline ventures, two sources told the Hindustan Times and its financial offshoot Mint on condition of anonymity.

Tata, which is among those that have expressed an interest to acquire flag carrier Air India (AI, Mumbai Int'l), revealed its intention in December to raise its stake in AirAsia India from 51% to 84% by buying part of the stake held by its Malaysian partner AirAsia Group.

As previously reported, before the end of 2020 it duly moved to increase its holding to 83.67% for a total consideration of USD37.66 million. This deal has not yet closed, however. Under the share-purchase pact with AirAsia, Tata has the option of raising its stake in AirAsia India to 100%, but this may not happen if Tata opts not to close the deal on the additional 32.67% by the end of March.

A decision on the low-cost carrier’s fate is expected to be taken by the end of March, the sources said, by which time more clarity is hoped for on Tata’s bid for Air India.

“A final decision in this regard depends on whether AirAsia continues as a minority investor,” one source said. “In the event of AirAsia continuing its investment, Tata Sons may not be required to pay a royalty for the use of the brand name, which is a key factor.”

Tata also owns 51% of full-service airline Vistara, with the rest held by Singapore Airlines (SQ, Singapore Changi). A potential merger of the two carriers under the Vistara brand would need consent from Singapore.

“A merger with Vistara depends on many factors, including improvement in load factor, cash flows, vaccinations, global lockdowns and travel restrictions, the proposed deal with Air India, the consent of Singapore Airlines, the completion of pending aircraft orders, and competition from other airlines in India,” a source said. “If all this works, several sectors will open up for flights, improving prospects for AirAsia India.”

Tata is also reportedly studying the idea of merging AirAsia India, Vistara, and Air India if it wins the bid for the flag carrier, possibly operating them under a new brand - if Singapore Airlines consents.

“The Air India deal will depend on the government as it will have to absorb a large part of its debt. If the government keeps conditions including keeping the Air India brand name intact for a time period, a different strategy will be required,” the source explained.

Tata may then run Air India separately or merge AirAsia India into Air India, or it may operate Air India separately while merging AirAsia India and Vistara as a single entity.

“The first will depend on the conditionality kept by the government and the price at which the proposed deal is formalised. The second will depend a lot on how the balance sheet of AirAsia India improves, how Covid-19 subsides and routes open up, and whether Singapore Airlines agrees to a merger at a future date after March 31,” the source concluded.
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The_Goat · Posted: Sun Jan 10, 2021 9:20 pm Post subject:

justbala · Member Joined: 11 Jan 2007 Posts: 1895 Location: Bangalore

The_Goat · Posted: Wed Jan 13, 2021 4:03 pm Post subject:

nadarji · Member Joined: 11 Jan 2007 Posts: 305

There are other examples too - About Ted/Song etc in the US getting "merged back" to the parent carrier.

AirAsia, in the same vein, would have given the Tatas good insight into what makes a good low cost carrier. With most US carriers having figured out how to provide differentiated services under the same brand, same hardware etc, this shouldnt be difficult for the Vistara/ to follow.

Keeping the airlines separate doesnt help much, SQ itself has recently done a lot of consolidations, with Scoot/Tiger/Silk/SQ.

A combined AI/AirAsiaInda/IX/Air Asia India gives a lot more synergy. The costs, profits and service of the IX operation would be similar, except that a person would be able to fly say TRV-MAA-SIN on the new carrier, which was not possible with the current AI/IX dispensation.

Vistara does fly economy only aircraft - so its not going to be THAT different.

justbala · Member Joined: 11 Jan 2007 Posts: 1895 Location: Bangalore

GF1011 · Member Joined: 02 Jan 2015 Posts: 86

747-237 · Posted: Sat May 01, 2021 8:15 am Post subject:

Air Asia India has added a new A320NEO to the fleet today, as VT-ATH.
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747-237 · Posted: Fri Oct 08, 2021 3:29 pm Post subject:

Air Asia India has added a new A320NEO to the fleet today, as VT-ATJ.
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747-237 · Posted: Sat Oct 30, 2021 8:28 am Post subject:

https://www.ch-aviation.com/portal/news/109065-airasia-india-inches-towards-international-permit

AirAsia India inches towards international permit

28.10.2021

AirAsia India (I5, Bangalore Int'l) is closing in on obtaining international flying rights, the Economic Times newspaper has reported, a development that would give its conglomerate parent Tata Sons four airlines with permits for overseas operations in the near future. It currently has only one with such permission, Vistara (UK, Delhi Int'l).

The acquisition of Air India and Air India Express by Tata subsidiary Talace is now expected to conclude by the end of December, and both of these airlines operate international flights.

Anonymous sources told the newspaper that AirAsia India, in which Tata holds an 83.67% stake, recently received security clearance to commence international operations. However, many other civil aviation procedures still need to be tackled, such as securing separate permits for scheduling, slotting, and training. According to the inside sources, these steps could take another two to six months.

The budget carrier, in which AirAsia Group maintains a 16.33% stake - the Malaysian group has signalled it will exit the Indian business by March 2022 - currently operates 47 routes within India with its fleet of 35 aircraft (thirty A320-200s and five A320-200Ns), the ch-aviation fleets advanced and ch-aviation capacities modules show.

AirAsia India was not immediately available for comment.
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747-237 · Posted: Fri Nov 19, 2021 9:04 am Post subject:

https://www.ch-aviation.com/portal/news/109935-tata-to-merge-100-owned-airasia-india-air-india-express

Tata to merge 100%-owned AirAsia India, Air India Express

19.11.2021

With Tata Sons likely to take control of and start operating Air India (AI, Mumbai Int'l) by January, the Indian conglomerate has started work on merging the flag carrier's budget unit Air India Express (IX, Mumbai Int'l) with the no-frills carrier it now intends to fully own, AirAsia India (I5, Bangalore Int'l), “top executives” close to the matter told The Economic Times on November 18.

The group currently holds an 83.67% stake in AirAsia India. Also on November 18, a source in the banking sector confirmed to another newspaper, Business Standard, that Tata Sons would buy the remaining stake for USD19 million in a transaction to be completed by early next year. Once that is done, the planned merger with Air India Express can then go ahead.

“This is the most logical move at this stage,” one of the executives told The Economic Times. “With so many experts on deck, this integration will help the group swiftly set up the single airline structure it has been planning for a while.”

Tata Sons has organised a number of meetings in recent weeks with the senior management teams of AirAsia India and Air India, also involving external corporate integration specialists, to discuss matters such as melding departments, staff, and maintenance procedures.

“There is a sense of urgency to quickly get operations seamlessly off the ground and ensure no disruptions at customer-facing points,” said another source, adding that Tata is keen to drive cost efficiencies and prevent the duplication of operations by redeploying staff if possible.
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747-237 · Posted: Wed Feb 09, 2022 3:22 pm Post subject:

https://timesofindia.indiatimes.com/business/india-business/airasia-india-gets-nod-for-1st-international-flight/articleshow/89442880.cms

AirAsia India gets nod for 1st international flight

Feb 9, 2022

Tata Group’s AirAsia India (AAIPL) has finally got the nod to operate its first international flight this month, nearly eight years after it started operations. The low cost carrier, in which Tatas own 83. 6% and could shortly acquire the remaining 16. 4% from Malaysian AirAsia Berhad, will operate a nonscheduled cargo flight on Kochi-Dubai-Kochi route.

The airline’s first flight was in June 2014 and it achieved a fleet size of 20 aircraft in December 2018. It then met the 0/20 rule — no minimum requirement on number of years in operation and at least 20 aircraft in fleet — to fly abroad. But a number of cases over the airline’s effective control prevented the government from giving that clearance.
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747-237 · Posted: Thu Nov 03, 2022 9:25 am Post subject:

https://www.business-standard.com/article/companies/airasia-exits-airasia-india-sells-16-33-stake-to-tatas-for-rs-155-64-crore-122110201204_1.html

AirAsia exits AirAsia India, sells 16.33% stake to Air India for Rs 156 cr

Nov 2, 2022

Ending its uncomfortable journey in India after eight years, Malaysia-based AirAsia Group on Wednesday said it has exited AirAsia India by selling its remaining 16.67 per cent stake to Tata Group-owned Air India for Rs 155.64 crore.

Later in the day, Air India said it has begun the process of creating a single low-cost carrier subsidiary by merging AirAsia India and Air India Express. A working group consisting AirAsia India CEO Sunil Bhaskaran and Air India Express CEO Aloke Singh has been formed for the two carriers' integration, which is expected to take approximately 12 months, it added.

Meanwhile, AirAsia Group said AirAsia India can use the "AirAsia" brand name for 12 months. AirAsia India has been making losses since its first commercial flight on June 12, 2014. Its net loss increased by 42 per cent to Rs 2,178 crore in FY22.

Bo Lingam, Group CEO, AirAsia Group, stated: “Covid has allowed us to re-examine our priorities, and we felt that it was best suited for AirAsia to develop an Asean-only business, where we have four great airlines– in Malaysia, Thailand, Indonesia and the Philippines– with a much loved brand and presence."
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iah87 · Member Joined: 17 Apr 2007 Posts: 2557

747-237 · Posted: Mon Dec 26, 2022 8:31 am Post subject:

https://timesofindia.indiatimes.com/business/india-business/tatas-rename-airasia-india-as-aix-connect-ahead-of-merger/articleshow/96505060.cms

Tatas rename AirAsia India as AIX Connect ahead of merger

Dec 26, 2022

Tata Group has renamed AirAsia India as AIX Connect, ahead of the low-cost carrierâ€™s (LCCâ€™s) merger with Air India Express. The salt-to-satellite conglomerate is now the 100% owner of erstwhile AirAsia India as it recently bought out Malaysian AirAsia Aviation Groupâ€™s remaining 16. 3% in this JV that had started flying in 2014.

Tatas are consolidating their four airlines â€” full-service Vistara into Air India and LCC AirAsia India into AI Express. While the LCC merger has to be completed within a year, the full serviceones have to be integrated by March 2024 after getting regulatory approvals.
â€œTill the mergers happen, all four airlines have to run separately. What has happened now is that AirAsia India has been renamed AIX Connect, which will be merged into AI Express. They are both separate companies,â€said people in the know.

Last week, AI MD & CEO Campbell Wilson had named AI old-hand and AI Express CEO Aloke Singh as the head of the low-cost airlines from January 1, 2023. Tata Group is going to place a mega order (150-200 Boeing 737 Max jets) for the LCC soon, along with aircraft for full-service AI, which will be a mix of both narrowand wide-bodies. AI Express has a fleet of Boeing 737s. Vistara too has some ex-Jet Airways Boeing 737s, which are likely to be given to AI Express.
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