Tatas to increase AirAsia India stake to 41%.

In a significant move,TATA Sons will hike its stake to 41.06 per cent in low cost carrier AirAsia India.The airline, which is facing stiff competition, is also set for top management reshuffle with CEO Mittu Chandilya expected to be elevated as Managing Director,in addition to his current responsibility.“We are in the process of subscribing to the capital of AirAsia India which will take up our stake to 41.06 per cent from the current 30 per cent,” a Tata Sons spokesperson said.
While specific details could not be immediately ascertained, Tata Sons is likely to acquire the additional stake from Arun Bhatia’s Telestra Tradeplace, which currently holds 21 per cent stake in AirAsia India.The no-frills carrier is a three-way joint venture in which Malaysia’s AirAsia Berhard owns 49 per cent.AirAsia India is expected to soon effect its first management revamp, since commencing operations in June last year.
The incumbent CFO Vijay Gopalan has already put in papers.“Our CFO, Vijay Gopalan has decided to resign for personal reasons.... We through our board of directors are already in the process of identifying a suitable replacement for this critical position,” the airline said in a statement yesterday.