Thursday, February 21, 2013

Tata partners AirAsia to fly back into civil aviation

New Delhi: Making its third foray into civil aviation in 16 years, the Tata group has picked up a 30 per cent stake in a three-way joint venture with Malaysia's AirAsia to start a low-fare domestic airline in India.
An AirAsia statement said Wednesday that it had filed an application with the FIPB to invest 49 per cent in the venture that includes Tata Sons and Arun Bhatia's Telestra Tradeplace.
The proposal is the first since the government last September allowed 49 per cent FDI in civil aviation from foreign carriers. AirAsia is Asia's largest budget airline with 118 planes.
"This is an AirAsia initiative. When (they) approached Tata Sons with the proposal, Tata Sons concluded that given their reputed business model, AirAsia could be a relevant and successful service provider in the domestic sector. That is the reason for (our) investment in the venture," a Tata spokesperson said.
21/02/13 Indian Express