New Delhi: After clearing the Foreign Investment Promotion Board (FIPB) hurdle, the proposal by Malaysia-based AirAsia Berhad and the Tata Group to float a domestic airline is headed into some turbulence. The civil aviation ministry is likely to raise objections to the application on the grounds that the proposed company could end up with a majority ownership in the venture vested with the foreign partner.
Issues that are likely to be raised when the airline applies to the civil aviation ministry for a 'no objection certificate', include the point pertaining to the foreign partner being the single largest shareholder in the venture and on the use of the AirAsia brand name.
"There are various issues with the proposal and all of it will be scrutinised after the proposal comes to us. They key one is a majority ownership by AirAsia, the foreign partner, and minority ownership by two Indian partners.
09/03/13 Indian Express
