NCLT approves amalgamation of Air Asia with Air India Express

The National Company Law Tribunal (NCLT) at Chandigarh on Tuesday approved the amalgamation of AIX Connect Pvt Ltd., owner of Air Asia Airlines, with the Air India Express Ltd company..A coram of judicial member Harnam Singh Thakur and technical member LN Gupta noted that the amalgamation proposal had been granted sanction from sectoral regulators including the Registrar of Companies and the Ministry of Civil Aviation (MoCA).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.“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 tribunal held..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 owned Air Asia operates as a domestic low-cost carrier with a network extending to 19 destinations in India. Air India Express operates as an international low-cost carrier with the objective of providing convenient connectivity to short/medium haul international routes in the Gulf and Southeast Asia at affordable fares with a network extending to 34 destinations..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.Accordingly, NCLT allowed the amalgamation within 9 months of filing of the plea..AIX Connect and Air India Express were represented by advocates Atul V Sood, Shashank Gautam, Saravna Vasanta and Alok Gokhale briefed by P&A Law Offices.[Read order]