On Tuesday the company announced it would increase its holdings in the Indian-based joint venture with AirAsia from 51% to 84%, BBC reports.
AirAsia, owned by Malaysian tycoon Tony Fernandes, has been scaling back its operations during the Covid pandemic.
Last week Tata also put in a bid for the country's struggling national carrier Air India.
AirAsia India has struggled to make money in a market considered to be one of the world's toughest due to high fuel taxes and fierce competition.
It said "India is a non-core market" and the transaction would allow it to concentrate on recovery in its key markets of Malaysia, Thailand, Indonesia and the Philippines.
Aviation experts believe this acquisition could give Tata a stronger position in the sector, and help secure Air India, which has been put up for sale by the Indian government.
The Tata Group, which also owns Jaguar Land Rover, originally founded the airline in 1932 but sold its stake to the government in the 1950s.
Tata also operates the Vistara airline in partnership with Singapore Airlines.
