Aviation ministry refuses to let Ross, Nabha board SpiceJet

New Delhi: Budget carrier SpiceJet’s plan to induct American billionaire Wilbur Ross on its board has hit a roadblock. The civil aviation ministry has questioned the plan to revamp the SpiceJet board by including Mr Ross and Ranjeet Nabha, the India representative of the US investor’s firm Wilbur Ross.
While the airline feels that the number of foreigners on its board would not exceed the permitted limit even after these inductions, the ministry feels otherwise. According to ministry officials, the nine-member board of SpiceJet already has four foreign nationals. Therefore, two more foreign nationals cannot be taken on board.
SpiceJet, however, has a different account. According to SpiceJet spokesperson, there are only two foreigners on its seven-member board. Osman Qureshi and Khaled Mohammad Ali Al Kamda (both foreign nationals) are no longer on the board, she said.
However, according to information available with the ministry, both Qureshi and Kamda are still on the airline’s board. An approval from the government, including security clearance from the home ministry, is required everytime an airline reconstitutes its board.
Under Civil Aviation Requirements issued under Aircraft Rules, Indian citizens should comprise two-thirds of the directors on board of domestic airlines. The chairman has to be an Indian citizen and substantial ownership as well as effective control have to be vested in Indian nationals.
09/09/08 Nirbhay Kumar/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Foreign Sep 2008, SpiceJet Sep 2008