JOIN USSix months after India opened its skies to foreign airlines, the overseas investment regulator on Wednesday granted approval to the Malaysia-based AirAsia to set up an airline together with the Tata group and Telstra Tradeplace.
The AirAsia joint venture now requires approval from the aviation regulator DGCA before launching of air operations.
The low-cost Malaysian Airline will invest Rs 80 crore and will own 49 per cent in the joint venture, Tata Sons will hold 30 per cent, while the remaining 21 per cent will be controlled by the Delhi-based businessman Arun Bhatia’s company Telstra Tradeplace.
“The proposal was approved at a meeting of the Foreign Investment Promotion Board,” Economic Affairs Secretary Arvind Mayaram said.
“Now they will have to take the necessary licences from the DGCA. They can start operating now once they get the licence,” he said.
The proposal was submitted to the FIPB last month. AirAsia, considered Asia’s largest low-cost carrier, will be headquartered at Chennai and mainly focus on providing domestic connectivity to smaller cities, according to a statement by the airlines.