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Bloomberg
AirAsia Group Bhd has stopped funding its Indian affiliate as the global travel slump leaves the Malaysian group struggling to support a sprawling empire of no-frills airlines, people familiar with the matter said.
AirAsia India Ltd’s future may now depend on Indian conglomerate Tata Group, its majority shareholder, which has provided emergency funding but has yet to commit to a full rescue, according to the people, who asked not to be named discussing a confidential matter.
The airline isn’t at any immediate risk of folding, the people said.
India’s aviation minister said over the weekend that AirAsia was shutting up shop in
the South Asian nation, though his office later suggested the comment was taken out of
context.
AirAsia Group and AirAsia India declined to comment, as did a representative for Tata Group.