AirAsia teams up with Tata Group and Hindustan Aviation

AirAsia has finally found an Indian partner which is not just influential but will hopefully guarantee its success in a highly competitive market-place.

Sources said AirAsia's founder Tan Sri Tony Fernandes has teamed up with India's Tata group and Hindustan Aviation to set up a new airline to be known as AirAsia India.

In the deal, the Indian parties will take 51 % equity stake while AirAsia will hold the remaining 49 %, which is the equity it normally takes in its foreign joint ventures. Of the 51%, sources said Tata Group will have 30% stake and Hindustan Aviation 21% equity stake.

The three parties is said to have signed the partnership agreement this week and have submitted a proposal to the Indian government to seek a domestic air services licences also this week.

thestar.com