AirAsia India is formed as a result of joint venture between Tata Sons with 40.06% stake, Air Asia Berhad holding 49% stake and remaining stake shared by Arun Bhatia through his company Telestra Tradeplace.
This airline has it’s headquarter in Chennai, India and the primary hub of Air Asia India is in Bangalore, and it started with its operation on 12 June 2014. Formation of Air Asia India marked the return of Tata’s in aviation industry after sixty years, with a market share of Air Asia India is around 2.2%.
When in 2013 Feb, Foreign direct investment up to 49% is allowed by Indian Government in airlines, then Air Asia Berhad used this opportunity and applied to Indian Foreign Investment Promotion Board (FIPB) for asking permission to start its operations in India. Now, AirAsia has also planned to start its operations in tier II and tier III cities. Presently, Air Asia India covers 10 destinations.
Tony Fernandes, Air Asia group founder wants Ratan Tata to be the chairman, but he refused to be the chairman but later on became chief advisor to Management board of Air Asia India. Mittu Chandilya was appointed as CEO of Air Asia India on 15 May 2013. And S. Ramadorai was appointed as Chairman of the company. Amar Abrol is the current CEO of Air Asia India.