AirAsia India gets green light
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
The Foreign Investment and Promotion Board (FIPB) has approved AirAsia’s plan to enter Indian skies, according to a Finance Ministry statement.
The Malaysian carrier plans to start commercial operations in partnership with Tata Sons and Telestra Tradeplace Pvt Ltd. Malaysia’s largest budget carrier had proposed to induct INR80.98 crore to start the airline that would have a 49:30:21 joint venture with the Tata Group company and Telestra Tradespace. India’s Civil Aviation Minister, Ajit Singh said that AirAsia hasn’t yet approached the ministry.
“No, they have not submitted any application as yet. There are some concerns, some procedural issues with regards to the proposed airline. We will look into it quickly. But all that will depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of aircraft. Any clearance will depend on how fast they give all this information which will be required by DGCA to grant them a flying permit,” Singh said.
AirAsia is the first foreign airline to take advantage of the easing of the Foreign Direct Investment (FDI) norms in aviation in September 2012. The government has permitted foreign airlines to have 49% FDI in Indian carrier. AirAsia will be headquartered in Chennai and will initially be operating in South India.
