Tata Sons is reportedly looking to exit from loss-making budget airline AirAsia India, in which it holds a 51% stake.

Malaysia’s AirAsia Bhd owns the remaining 49% stake in the airline.

In May, AirAsia India had an almost 8% share in the domestic market.

Last month, AirAsia Bhd, which is facing problems due to disruptions in the airline industry as a result of Covid-19, approached the Tata Group to sell its stake.

As per the JV terms, Tata Sons has the right of first refusal.

According to The Hindustan Times, a source said: “The offer was, however, turned down by Tata Sons, which is not keen to continue investing in the airline and wants to focus on its full-service carrier, Vistara, which it jointly owns with Singapore Airlines as the minority partner.”

This news comes days after it was reported that Tata Sons may team up with other financial investors to buy the 49% stake in the joint venture.

The Malaysian airline is in discussions to raise more than $234.5million in funds, after its auditor expressed doubt over its ability to operate as a going concern, reported News18.

AirAsia operates flights to more than 150 destinations worldwide.

After being forced to ground its fleet due to Covid-19 pandemic, the Malaysian firm reported a loss of MYR803m ($188m) for the first three months of the year.