Tata group and partner AirAsia Investments infused has Rs 500 crore in budget-airline AirAsia India, increasing Tata Group's stake in the airline to about 51 percent, reported The Economic Times, citing sources close to the development.

As per the report, the investment helps the group to hold a controlling stake in two carriers including the Vistara.

Prior to the deal, both Tata group and AirAsia had 49 percent stake each with Tata Trusts managing partner R Venkataramanan and group executive S Ramadorai holding the rest, the report said.

“Stake allocation to Venkataramanan and Ramadorai was a business decision and the group now owns 51 percent in the airline,” a source was quoted as saying in the report.

As per the report, Air Asia India was started with 49 percent shareholding by AirAsia Group, 30 percent by Tata group and 21 percent owned by Arun Bhatia’s Telestra Tradeplace. Bhatia exited the airline in 2016, and Tata Sons, Venkataramanan and Ramadorai bought its stake.

The development comes at a time when the crisis in Jet Airways has created a vacuum in the aviation sector. The infusion of funds by the Tata could enable it to become the key player in the sector.