Friday, February 22, 2013

Tata-AirAsia JV: Will Ajit Singh throw spanner in works?


Is Aviation Minister Ajit Singh micro-managing the sector too much?
At least for the players, there are reasons to believe he is. When SpiceJet started selling tickets at discounts, ministry officials had expressed their displeasure and even asked other airlines to resist from competing.
Media reports had also suggested that the minister had a say in the aircraft purchases of IndiGo.
Now, he has said that it would have been nice if Tatas could set up an airline on their own, which sounds like a cold response to the three-way joint venture between Tata Sons, Air Asia and Telestra Tradeplace proposed on Wednesday.
It is highly unlikely that he will oppose the deal, given the huge positive response the joint venture announcement has got. Even if Singh may want to oppose it, there are other quarters who may strongly favour the investment.
22/02/13 First Post
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