Indian water has proposed to obtain all Indian AirAsia equity.
The Indian Competition Commission (CCI) has also told a proposal for the Indian AirAsia acquisition.
According to CCI notification based on section 5 (a) (i) (a) and 5 (b) (i) (a) from the competition law, 2002, the proposed combination is related to the acquisition of all capital of AirAsia India’s equity share through India Air. At present, Tata Sons (TSPL) holds 83.67 percent of the capital of Air Asia India’s equity shares.
Further notes: “The proposed combination will not lead to changes in competitive landscapes or cause considerable adverse effects on competition in India, regardless of the way in which the relevant market is defined.”
In particular, the two airlines are run by Tata Sons – Air India is a subsidiary that is fully owned, while AirAsia India is a joint venture with Malaysia’s AirAsia, which has 16.33 percent of share ownership.
According to the notification, Air India has submitted a relevant market, in connection with horizontal overlapping. This is a market for domestic passenger air transportation services in India, the market for the provision of domestic air cargo transportation services in India, and the market for the provision of charter flight services in India.
This has also handed over the relevant market involving vertical overlapping. This is:
– Upstream Market for Land Handling Services, and the downstream market for passenger air transportation services (including charter flight services) at Bengaluru, Hyderabad, Delhi, Thiruvananthapuram and Mangalore airports; and the upstream market for cargo handling services at Bengaluru Airport.
– Upstream Market for cargo handling services, and downstream markets for air cargo transportation services and charter battle services at Bengaluru Airport.
-Hulu market for catering services on flight, and downstream markets for passenger air transportation services (including flight charter services) in India.
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