Tata Sons is reportedly looking to exit from loss-making budget airline AirAsia India, in which it holds a 51% stake.
Malaysia’s AirAsia Bhd owns the remaining 49% stake in the airline.
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In May, AirAsia India had an almost 8% share in the domestic market.
Last month, AirAsia Bhd, which is facing problems due to disruptions in the airline industry as a result of Covid-19, approached the Tata Group to sell its stake.
As per the JV terms, Tata Sons has the right of first refusal.
According to The Hindustan Times, a source said: “The offer was, however, turned down by Tata Sons, which is not keen to continue investing in the airline and wants to focus on its full-service carrier, Vistara, which it jointly owns with Singapore Airlines as the minority partner.”
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By GlobalDataThis news comes days after it was reported that Tata Sons may team up with other financial investors to buy the 49% stake in the joint venture.
The Malaysian airline is in discussions to raise more than $234.5million in funds, after its auditor expressed doubt over its ability to operate as a going concern, reported News18.
AirAsia operates flights to more than 150 destinations worldwide.
After being forced to ground its fleet due to Covid-19 pandemic, the Malaysian firm reported a loss of MYR803m ($188m) for the first three months of the year.
