Increased ownership in AirAsia to help Tata group extends its wingspan

The plan to take ownership of AirAsia would give it a presence in both the full-service and low-cost carrier markets

This week, news was out that the Tata group plans to raise its stake in AirAsia India from 51 to 76 per cent and prepare the ground for an exit route to its Malaysian partner, AirAsia Berhad. The group has also invested over Rs 650 crore in the airline through optionally convertible debentures, which can be converted into equity. And it is looking for a name for the airline (expected to have the Tata tag) once the brand licensing agreement ends in March next year.

For the Tatas, this will mean a wide wingspan across the aviation market — from full-service