Mumbai: AirAsia plans to launch an Indian airline in partnership with a local promoter as the desire to earn share in one of Asia's biggest aviation markets trumps fears of a hypercompetitive industry full of bureaucratic obstacles.
Two people close to the development said Asia's largest budget carrier is exploring options to set up a company that will be majority owned by an Indian promoter, preferably a well-known business group.
AirAsia will hold 49% in the venture that will apply for an aviation licence. The Malaysian carrier has broached the issue with the Videocon Group and the talks are at a preliminary stage, one person said. Venugopal Dhoot, the chairman of the Videocon Group, confirmed that they had been approached by the airline.
"They had approached us. These were preliminary discussions. There's nothing I can say now," Dhoot said. An AirAsia spokesperson in Malaysia declined to respond to an ETquery on the matter.
Tony Fernandes, the promoter of AirAsia, is a flamboyant businessman with a taste for Formula One racing and football.
10/01/13 Manisha Singhal/Economic Times
