On Tuesday, the Competition Commission of India (CCI) approved a proposal by Tata Group-owned Air India to acquire the entire stake in Tata-controlled low-cost carrier AirAsia India to merge into a single airline.

The auto and steel group holds an 83.67% stake in AirAsia India, with the remainder held by AirAsia Investments Berhad (AAIL), a unit of Malaysia’s AirAsia Group

Air India had earlier sought CCI’s approval for the proposed transaction. Last year, Talace Private Limited, a wholly-owned subsidiary of Tata Sons, acquired Air India and Air India Express.

It comes at a time when Tata Sons are trying to launch Air India, which has survived taxpayer bailouts year after year. The development could help the Salt-to-Steel consortium regain its aviation empire, which currently consists of three non-profit carriers, including Vistara, a local joint venture of Singapore Airlines Limited.

Tatas said earlier in the offer that the deal would not result in a change in the competitive landscape nor would it have any adverse impact on competition. But airlines will face some overlap in domestic passenger and cargo services and charter flights.