Thursday, February 25, 2016

Tatas refute accusations of foreign control in AirAsia India, Vistara

New Delhi: The Tata group flatly denied accusations by rivals that the carriers it held stakes in were violating the law on management control as the ill-tempered argument between the two sides showed little sign of abating.

"Majority ownership and effective control of both airlines - AirAsia India and Vistara - are with the Indian parties as per the requirements of press note 6," parent Tata Sons said in a release. "All the important decisions concerning the day-to-day operations of the airlines are taken by the management teams of these airlines under the overall supervision, control, and direction of the respective boards of directors (which include a majority of Indian nationals)."

Tata Sons added that its opposition to the 5/20 rule stems from its belief that such a move is in national interest. Indian rules currently stipulate that local carriers can only start international flights if they have been operating for five years and have 20 planes. Tata Group Chairman Emeritus Ratan Tata had said in a post on Sunday that older carriers were resisting its abolition as a protectionist measure, unleashing a torrent of criticism.
25/02/16 Economic Times
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