AirAsia Aviation Group has entered into a share purchase agreement to sell the remaining equity shares held in AirAsia (India) to Air India, an affiliate of Tata Sons.
The latest agreement will allow the airline to re-examine its strategic objectives to focus on South-east Asia.
Bo Lingam, group CEO, AirAsia Aviation Group, said “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”.
He added: “India will remain an important market for AirAsia and will continue to be served by our various airlines. We will use the experience and knowledge we have gained from operating in the Indian domestic market to grow the ASEAN-Indian market in logistics and passenger services to a far greater extent.”
AirAsia India currently flies to 18 destinations with a market share of 5.9 per cent.