Malaysia-based AirAsia and Tata Sons' proposed airline has moved closer to the licence to fly. The Foreign Investment Promotion Board (FIPB) has cleared the proposal on Wednesday.
Senior government officials confirmed the development to say the proposal satisfies the 49 per cent foreign direct investment (FDI) limit as per the sectoral norms. The promoters have also put up Rs 80 crore as the initial investment.
Significantly, a civil aviation official at the meeting raised a query about the lack of clarity on FDI norms in the proposal. The query was on the language of the Cabinet-approved FDI notification that a foreign airline can buy stake in an existing firm with licence. "The civil aviation ministry representative raised the query on clarity to the representative of the Department of Industrial Policy and Promotion (DIPP), which clarified that the norms are for both new and existing airlines. The orders clarifying the position will be issued soon," said an official.
07/03/13 Indian Express
