Gearing up to launch services in partnership with Tatas, Malaysian low-cost carrier AirAsia has incorporated a company in India with the filing of all requisite documents with the Ministry of Corporate Affairs.
The venture, AirAsia (India) Pvt Ltd, was incorporated as an "Indian non-government company" with its registered office in Mumbai. It will be an "unlisted" company, as per the documents filed with the Registrar of Companies (RoC).
The private sector company was incorporated on March 28, 2013 with an initial authorised capital of Rs 5 lakh.
A company can change its share capital, as also other details, at a later stage.
Most of the existing air carriers present in the country, including SpiceJet, Go Air, Kingfisher, Jet Airways and IndiGo have authorised share capitals running into hundreds of crores of rupees, their RoC filings show.
Among various documents submitted by AirAsia (India), the incorporation certificate was filed on March 28, while Article of Association, Memorandum of Association, image of airline logo and other forms were filed earlier on March 11.
Prior to that, AirAsia had registered the name for its Indian venture on March 1, after getting the necessary approval from the ministry.
The filing process for this new venture has been completed on a fast-track basis, a senior official said.
AirAsia chief Tony Fernandez has also tweeted that the company formation has been done for the Indian venture.
"Airasia India pvt has been formed. One more step. Been studying the Indian market hard. Exciting. We can make a difference," he wrote on the micro-blogging site.
The Foreign Investment Promotion Board has already approved investment in the new venture, wherein Malyasia-based AirAsia would hold 49 per cent stake, Tata Sons will have 30 per cent and 21 per cent stake would be owned by Telestra Tradeplace's Arun Bhatia, whose son is married to the daughter of NRI billionaire Lakshmi Mittal.
Being started with an initial investment of USD 14.5 million (about Rs 80 crore), AirAsia India will compete in the domestic passenger aviation space with Jet Airways, Spicejet, IndiGo, Go Air and state-run Air India.
The airline now needs to get a no-objection certificate from the Aviation Ministry, and thereafter an air transport license from the DGCA (Directorate General of Civil Aviation) to be declared a scheduled airline.
AirAsia India would also mark the re-entry of Tatas into the aviation space after about 60 years of JRD Tata-founded Air India being nationalised in 1953.
AirAsia and Tatas announced their plans to start the low-cost airline in India on February 20, while the FIPB approved the foreign investment for the venture in March.