Air Asia issues to be sorted out

Hoping that the inter-ministerial differences would be sorted out for a smooth set-up of the proposed airline venture by Tata Group, with Malaysian low-cost carrier Air Asia, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, “I am not aware of the differences that the various ministries have. But I am sure they will be sorted out. If Tatas and an international airline want to set up an Indian airline, as long as the international fellows  hold up to  49 per cent  they should be allowed to do so.”

The Foreign Investment Promotion Board  (FIPB)  on March 6 cleared the Malaysian budget carrier AirAsia’s bid to launch an airline in India in a joint venture with Tata sons and Telestra Tradeplace. AirAsia has announced it would set up a 49:30:21 joint venture with the Tata Sons and Telestra Tradeplace of investor Arun Bhatia to launch a new Indian airline. The initial investment by the AirAsia-led joint venture would be `80 crore.

“ In my view if Tatas want to set up a company to run an airline within that 49 per cent limit  the intention of policy as far as I know  is quite clearly that they should be allowed to do it,” Ahluwalia added.