Tuesday, March 12, 2013

Ministries to sort out differences to pave way for AirAsia India: Montek Singh Ahluwalia

Mumbai: Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Government of India has said that inter-ministerial differences would be sorted out paving the way for Tata Sons to set up an airline company, AirAsia (India) Private Ltd,  in collaboration with Malaysian budget carrier AirAsia Berhad. "I don't know what the detailed differences are. I am sure they will be sorted out. If Tatas and an international airline want to set up an Indian airline as long as the international fellows (hold up to) 49 per cent, they should be allowed to do so," Ahluwalia told reporters yesterday in New Delhi. “In my view, if Tatas want to set up a company to run an airline within that 49 per cent limit, the intention of policy as far as I know, is quite clearly that they should be allowed to do it," he added. Last week, the Foreign Investment Promotion Board (FIPB) cleared the Malaysian budget carrier AirAsia's bid to launch an airline in India by joining hands with Tata Sons. But, the Ministry of Civil Aviation sought further clarity on Foreign Direct Investment (FDI) policy in aviation, particularly on whether a foreign airline could invest in a new venture after the approval.
12/03/13 TravelBizMonitor