New Delhi: As Malaysian budget carrier AirAsia readies to spread wings in India announcing hiring plans on Wednesday, documents available with ET reveal that the civil aviation ministry had tried to thwart the foreign airline's India plans.
The aviation ministry had disapproved of AirAsia's India entry, arguing that the Indian promoters — Tata Sons and Arun Bhatia — should have first set up an airline company, obtained a flying permit and then sold off 49% to the foreign partner, minutes of foreign investment proposal-clearing committee, reviewed by ET, reveal.
"The proposal is supported in principle, but the applicant should first set up the company, obtain licence from ministry of civil aviation and then divest to a foreign collaborator in order to follow the policy intent," the civil aviation ministry had argued on March 6 in the meeting of Foreign Investment Promotion Board (FIPB), which had taken up AirAsia's proposal for clearance.
Interestingly, AirAsia India still hasn't approached the civil aviation ministry for a noobjection certificate (NOC), a prerequisite for getting a flying permit — though has shortlisted the name of an India CEO and will also hire cabin crew next week in Chennai.
04/04/13 Anindya Upadhyay/Economic Times
