NCLT Approves Amalgamation Of Air Asia With Air India Express
NCLT Approves Amalgamation Of Air Asia With Air India Express
The Chandigarh bench of the National Company Law Tribunal (NCLT) on 11 June approved the amalgamation of AIX Connect Pvt Ltd., owner of Air Asia Airlines, with the Air India Express Ltd company.
The tribunal observed, “Sanction is hereby granted to the ‘Scheme of Amalgamation’ amongst the petitioner companies and their respective shareholders under section 230 to 232 and other applicable provisions of the Companies Act, 2013.”
The amalgamation proposal has been granted a no-objection certificate from the Ministry of Civil Aviation (MoCA) and also sanction from the Registrar of Companies. The MoCA has also granted a time frame of 8 months from the date of the written order of the Tribunal approving the Scheme to enable the Company to complete the process of merger and associated formalities.
Accordingly, it allowed the scheme of amalgamation of the two companies filed before NCLT under sections 230 to 232 of the Companies Act of 2013.
Both airline companies are engaged in the business of aircraft passengers and cargo services and are wholly owned subsidiaries of Air India Ltd.
AIX Connect, formerly known as AirAsia India, is a low-cost airline engaged in the business of aircraft passenger and cargo services and operates with a network extending to 19 destinations in India and a wholly-owned subsidiary of Air India Limited which in turn is owned by Tata Group.
Air India Express is a low-cost airline and a wholly owned subsidiary of Air India engaged in the business of aircraft passenger and cargo services and operates as an international low-cost carrier. It operates more than 2000 flights per week to various destinations across India, the Middle East, and Southeast Asia. It is The Scheme of Amalgamation filed by the companies provides for an amalgamation of the two companies with AIX Connect’s dissolution without winding up.
Consequently, Air India Express alone will have 100% shareholding in the parent company.
The tribunal noted that the Regional Director of the Northern region, Registrar of Companies of the Delhi & Haryana, Official Liquidator attached to the High Court of Punjab & Haryana, Income Tax Department, MoCA and the Director General of Civil Aviation (DGCA) had given their ‘no objection’ to the approval of the scheme.
The tribunal observed that the Transferor Company (AIX Connect Private Limited) shall stand dissolved without undergoing the process of winding up on completion of merger and associated formalities after receipt of necessary approvals including as required by DGCA/MCA/any other Authority within a period of 8 months from the date of the tribunal’s order.
