Thursday, October 13, 2016

AirAsia India's control issue in spotlight as govt denies knowledge of key JV agreement

Mumbai: The contentious issue of AirAsia India's ownership and control is back in the spotlight with the Civil Aviation Ministry claiming it was unaware regarding the nature of relationship between AirAsia India and its parent.

A report in the Mint news paper on Thursday says that the ministry is likely to file an affidavit in the Delhi High Court admitting that it was not aware about the brand licence agreement which gives the Malaysian partner the influence and control over key functions such as ancillary revenue, branding, revenue management, engineering and finance of the Indian airline.

The affidavit will be filed in response to Bharatiya Janata Party leader Subramanian Swamy's petition challenging the grant of permit to AirAsia India.

Lawyers specialising in aviation law said at time of granting its approval the Civil Aviation Ministry seeks the shareholder agreement between the foreign airline and its Indian partner to examine aspects related to control but there is no specific requirement in rules to submit a brand licence agreement.
13/10/16 Aneesh Phadnis/Business Standard
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