AirAsia India gets approval from Indian government
New Delhi, India (4E) – The Indian government has approved the bid by Malaysian budget carrier, AirAsia, to set up an airline in Asia’s third largest economy, according to latest reports out of India.
Economic Affairs secretary Arvind Mayaram said that the plan has received the approval during a meeting of the country’s Foreign Investment Promotion Board (FIPB), which is a panel of officials that study foreign investment proposals.
The AirAsia India, which will be based in Chennai in South India, said the joint venture was made through partnership between the Malaysian carrier and Tata Group. AirAsia already flies into major Indian urban destinations like Chennai, Kochi and Bangalore.
The joint venture came after the Indian government’s decision to allow investment of up to 49 per cent by foreign carriers.
AirAsia, along with India’s Tata Sons and Arun Bhatia of Telestra Tradeplace, announced last month that it has forged with its partners an initial agreement to set up a budget airline in India. The joint venture saw AirAsia taking 49 per cent control, 30 per cent from Tata and the remainder to Mr. Bhatia.
After the Foreign Investment Promotion Board’s approval, the country’s economic affairs minister said that AirAsia’s next task is to secure required licences from India’s aviation regulators.