The Foreign Investment Promotion Board (FIPB) on Wednesday cleared the investment proposal of Malaysian budget carrier AirAsia to launch a new airline in partnership with the Tata Group and Arun Bhatia's Telestra Tradeplace.
AirAsia, through its investment arm, AirAsia Investment Ltd (AAIL), intends to own 49 per cent in the new airline with the remaining stake held by the other two Indian firms.
Soon after the FIPB cleared the AirAsia's proposal civil aviation minister Ajit Singh told reporters that his ministry has sought clarity on the FDI policy in the aviation sector on the grounds that it spoke of allowing such investment in an existing Indian carrier and not a new one. "The commerce ministry should change the rules to bring about clarity. Overall, I don't see a problem in the AirAsia joint venture (JV). Our ministry will see that the joint venture adheres to the laid-down rules," Singh said.
07/03/13 Business Today
