AirAsia India clears final hurdle

NEW DELHI: Flying may get affordable, once again. The Tata Sons-AirAsia JV crossed the final hurdle on Friday with DGCA disposing of all the objections against the proposed low-cost carrier (LCC). The new LCC may get the licence within a fortnight and start flying soon. The DGCA had received about 20 objections from, among others, the Federation of Indian airlines and BJP leader Subramanian Swamy. Their plea was that FDI by foreign airlines had been allowed into existing Indian airlines and not for creating JV startups. "The government has clearly said that FDI was for both existing and startup airlines. The matter was taken to court which also ruled that it was for the government to interpret the FDI rule. So all the objections have been disposed of, and once AirAsia meets all the requirements, it will be granted an airline operator permit (AOP)," said an official. AirAsia India (AAIPL) CEO Mittu Chandilya confirmed that the objections had been disposed of. The airline has already got in-principle approval for importing 10 Airbus A-320 aircraft. The final nod for AAIPL has come exactly a year after the Tatas announced the tie-up with AirAsia. In the JV, Tata Sons have a 30% stake, AirAsia, 49% and Arun Bhatia of Telestra Tradeplace has the rest. India had allowed foreign airlines to invest in domestic carriers in September 2012, after which Etihad decided to pick up 24% stake in Jet Airways. The $30-million Tata-AirAsia JV was the first startup after the FDI changes, which was later followed up by the Tatas announcing a tie-up with Singapore Airlines for forming a full-service airline. source: Times of India.