Friday, February 10, 2017

AirAsia India compliant with Indian laws: DGCA

The Directorate General of Civil Aviation (DGCA) will not cancel the air operator permit granted to AirAsia India as it hasn’t found any violation of ‘substantial ownership and effective control’ norms as alleged by its rivals.

The aviation regulator released a report based on directions of the Delhi High Court which had sought DGCA’s response to the Federation of Indian Airlines (FIA)’s plea alleging that the brand licensing agreement signed between AirAsia India and its foreign airline partner AirAsia Berhad, was not considered while granting licence to operate flights.

“I do not find that the terms and conditions laid down in BLA dilute the ‘substantial ownership and effective control’ of AirAsia India being vested in Indian nationals,” B.S. Bhullar, Director-General, DGCA said in an order on February 8, adding, “further, status on issuance of AOP [air operator permit] to AirAsia does not change.”

The FIA, which represents IndiGo, Jet Airways, SpiceJet and GoAir, had moved the Delhi High Court seeking a review of the air operator permit granted to AirAsia India.

The body had alleged that the day-to-day operations of AirAsia India were controlled from Malaysia as a result of the BLA signed in April 2013, violating the substantial ownership and effective control norms — a charge AirAsia India had denied.
09/02/17 The Hindu
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