Saturday, November 12, 2016

AirAsia India in more trouble as Delhi High Court orders probe

AirAsia India, the low-cost carrier in which Tata Sons has 49 percent stake, landed in further trouble when the Delhi High Court ordered a probe into management control of the company. It is in response to a petition filed by BJP MP Subramanian Swamy and the Federation of Indian Airlines (FIA) that Malaysian firm AirAsia Berhad was running the carrier.
The probe has to be completed by the regulator, the Directorate General of Civil Aviation (DGCA), within a month. To initiate the inquiry, AirAsia India has to submit the commercial agreement between the company and the Malaysian firm in a week, as directed by Delhi high court chief justice G Rohini and judge Pradeep Nadrajog.

The complaint filed by Swamy and the FIA — which represents IndiGo, Jet Airways, GoAir and SpiceJet — had alleged that a Brand Licensing Agreement (BLA) signed between AirAsia India and AirAsia Berhad in April 2013 effectively resulted in handing over day-to-day operations to the Malaysian entity, in violation of the India's existing civil aviation norms, according to the Mint.
AirAsia India has a market share of about two percent in India's domestic air traffic that is growing at about 23 percent month-on-month and is believed to be the fastest-growing civil aviation market in the world.
12/11/16 S V Krishnamachar/IBTimes

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