Finance
ministry sources said that AirAsia’s proposal to enter the Indian skies may be
considered by the Foreign Investment and Promotion Board (FIPB) on March 6. The
Malaysian budget carrier is planning to enter India through a joint-venture
with the Tata group company, Tata Sons Ltd and Arun Bhatia’s Telestra
Tradeplace Pvt Ltd.
AirAsia Investment Ltd’s (AAIL) proposal
has been listed in the agenda of the FIPB meeting to be held on March 6,
sources said. The Malaysian carrier has applied to acquire 49 per cent in a
joint venture with Tata Sons and Telestra Tradeplace. AirAsia, the Tatas and
Bhatia’s Hindustan Aviation have already inked a pact for the joint venture.
AirAsia is looking to take advantage of
the government easing the Foreign Direct Investment (FDI) policy in aviation.
Once the FIPB gives its nod, AirAsia
would be the first foreign airline to enter the domestic aviation market. The
airline is looking to start operations from the end of 2013 and AirAsia is
likely to initially pump in $50 million. With around three to four aircraft,
the joint venture will operate from Chennai and connect tier 2 and tier 3 cities.
Tata Sons will have a stake of 30 per
cent in the joint venture but will not be involved in the operational side.
This also marks the return of the Tata group to aviation; government-owned Air
India had been started by the Tata Group in 1932.
http://newindianexpress.com/business/news/article1475340.ece
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