A day before the
Foreign Investment Promotion Board (FIPB) will take up the Tata-AirAsia joint
venture (JV) proposal, Tony Fernandes, the promoter of the Malaysian low-cost
carrier, today announced on Twitter he had chosen the chief executive officer
(CEO) for the Indian venture.
It is believed
neither the ministries concerned nor the Department of Industrial Policy &
Promotion had given their written comments on the AirAsia proposal for
tomorrow’s FIPB meeting. However, some news agency reports suggested the civil
aviation ministry could create hurdles for the proposed company, saying the new
foreign direct investment (FDI) rules were meant only for existing airlines.
Earlier in the
day, the Directorate General of Civil Aviation (DGCA) had notified the new
rules for foreign direct investment into the aviation sector that permitted the
positions of CEO, chief financial officer (CFO) and chief operating officer
(COO) could be held by foreigners, subject to security clearance from the home
ministry. Fernandes’ announcement of going for a CEO with a South India link
had come within hours of this.
“I have selected
our CEO for AirAsia India. Very smart boy from the South, Madras. An amazing
CV. Will impress all,” he tweeted.
In another tweet,
indicating the hiring for the proposed
venture was on in full swing, Fernandes wrote: “Fantastic candidates put in
front of me by Tata Sons. I can’t believe the talent in India is amazing.”
After FIPB has
approved the proposal, the commercial launch of the venture would hinge on the
civil aviation ministry giving it an air operator’s permit. Before the
announcement of the Tata-AirAsia alliance, Civil Aviation Minister Ajit Singh
had told Business Standard no fresh licences would be issued because there was
a demand-supply mismatch in the Indian skies.
http://www.business-standard.com/article/companies/dgca-clears-the-air-on-foreigners-taking-key-positions-in-airline-joint-ventures-113030500406_1.html
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