AirAsia India is conducting an internal investigation after ex-Tata Sons chairman Cyrus Mistry raised red flags over functioning of the airline. During investigations, it surfaced that senior executives of AirAsia had complained to the company board and Tata Group about serious lapses in business practices time and again, but no actions were taken.
AirAsia executives highlighted few complaints, saying AirAsia was being "run" by Malaysian parent AirAsia Bhd, in contravention of FDI rules, and that the Indian venture was being "overcharged" by the Malaysian company.
According to Indian rules, foreign airlines can only own up to 49% in domestic airlines but effective management control must remain with the Indian partner.
As per reports, AirAsia India executives had warned board chairman Ramadorai and director Bharat Vasani about potential losses, and the way the airline was being run. Some executives had questioned AirAsia chief Tony Fernandes on entering into what they termed as “costly financial deals” with associate companies of AirAsia Bhd. Email correspondence between February 2014 and July 2015 highlights these complaints.
07/11/16 Business Insider India
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AirAsia executives highlighted few complaints, saying AirAsia was being "run" by Malaysian parent AirAsia Bhd, in contravention of FDI rules, and that the Indian venture was being "overcharged" by the Malaysian company.
According to Indian rules, foreign airlines can only own up to 49% in domestic airlines but effective management control must remain with the Indian partner.
As per reports, AirAsia India executives had warned board chairman Ramadorai and director Bharat Vasani about potential losses, and the way the airline was being run. Some executives had questioned AirAsia chief Tony Fernandes on entering into what they termed as “costly financial deals” with associate companies of AirAsia Bhd. Email correspondence between February 2014 and July 2015 highlights these complaints.
07/11/16 Business Insider India
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