Tata Sons, Telestra in discussions to hike stake in AirAsia

Tata Sons, which partly budgets carrier AirAsia India is looking at hiking its stake in the airline and is in discussions with Telestra Tradeplace in this regard.

AirAsia India is a three-way joint venture with the parent Malaysian airline AirAsia keeping 49% stake while the two other partners -- Tata Sons and Telesta Tradeplace of Arun Bhatia -- holding 30% and 21% stake respectively.

The Tata Group and Telestra Tradeplace are in discussions regarding raising stake in the airline, AirAsia Group Chief Executive told in an interview to a private business news channel.

When contacted, Tata Group spokesperson said, "As and when we have information to share, we will inform you." Bhatia did not respond to call when approached for his reaction.

The no-frills carrier had recently reported a loss of Rs 19 crore in the first three months of 2015.

AirAsia India, which commenced operations on June 12 last year, was the first airline to have come up after the then UPA government allowed foreign airlines to invest up to 49% in an Indian carrier.

Besides having investment in AirAsia India, Tata Sons also holds majority 51 per cent stake in full-service carrier Vistara, along with Singapore Airline, which holds the rest.