Will take decision on staying invested in India soon: AirAsia CEO Fernandes

AirAsia will soon take a decision on whether the airline wants to stay invested in India or expand in Southeast Asia, the Group's Chief Executive Officer Tony Fernandes said on Wednesday.

 

AirAsia Berhad and Tata Sons run a joint venture airline in India. While the Indian venture has not made a profit since its inception in 2014, the Covid-19 crisis has forced the Malaysia-based AirAsia group to review its investment in the country.

 

Fernandes described the Tatas as a fantastic partner. “Whether we should put money to continue in India or to expand in ASEAN, that's a discussion I am having with my partners in India,” he said at CAPA, a Centre for Aviation-organised industry event.

 

In July, the Tata Group infused Rs 300-crore capital in AirAsia India and is expected to hike its stake from 51 per cent to 76 per cent. AirAsia group has not participated in fundraising, as it focusses on cost control and reducing cash burn.

 

A media report on Wednesday said that the Tatas are tightening their grip on the airline and the shareholder agreement, too, has been reworked. AirAsia India will not pay dues to its Malaysian parent for services if it (AirAsia Group) fails to infuse funds by the year end according to revisedterms, the report said.