Arun Bhatia, the owner of Delhi-based investment firm Telstra Tradeplace, has claimed AirAsia India (I5, Chennai) is effectively controlled by AirAsia (AK, Kuala Lumpur Int'l) in contravention of Indian investment laws.
Speaking to The Economic Times, Bhatia said the Malaysian budget carrier's CEO Mittu Chandilya acted on the instruction of AirAsia Group's founder and CEO Tony Fernandes, and was in fact solely a figurehead. He also claimed that his concerns about the airline's poor financial performance and AirAsia's associated 'back-end' insurance and MRO contracts had either been dismissed or simply ignored by other shareholders.
"I was promised at the last board meeting in November that the issues I have complained against would be resolved. They haven't been resolved and hence I decided not to attend," he said adding that as an interim measure, he would pursue his concerns through either the courts or through the Indian government.
Bhatia also noted that his original 21% shareholding in the company had been whittled down to 10% in August after he refused to participate in a cash call. Though the Malaysians and Tata contributed, Bhatia justified his refusal on the grounds that the carrier had failed to make a return on its initial USD30 million investment. He has also refused in a the latest call for investment, this time for USD22 million.
14/12/15 ch-aviation
To Read the News in full at Source, Click the Headline
Speaking to The Economic Times, Bhatia said the Malaysian budget carrier's CEO Mittu Chandilya acted on the instruction of AirAsia Group's founder and CEO Tony Fernandes, and was in fact solely a figurehead. He also claimed that his concerns about the airline's poor financial performance and AirAsia's associated 'back-end' insurance and MRO contracts had either been dismissed or simply ignored by other shareholders.
"I was promised at the last board meeting in November that the issues I have complained against would be resolved. They haven't been resolved and hence I decided not to attend," he said adding that as an interim measure, he would pursue his concerns through either the courts or through the Indian government.
Bhatia also noted that his original 21% shareholding in the company had been whittled down to 10% in August after he refused to participate in a cash call. Though the Malaysians and Tata contributed, Bhatia justified his refusal on the grounds that the carrier had failed to make a return on its initial USD30 million investment. He has also refused in a the latest call for investment, this time for USD22 million.
14/12/15 ch-aviation
