AirAsia under PMO scanner
AirAsia India recently received clearances to operate in India
New Delhi: Just days ahead of the swearing-in of the new BJP-led NDA government at the Centre, the Prime Minister’s Office (PMO) has asked the civil aviation ministry to furnish all documentation regarding the issue of Substantial Ownership and Effective Control (SOEC) of start-up carrier AirAsia India which recently received clearances to operate in India.
The PMO also wants information on who made the decisions on the issue of SOEC in the matter and the civil aviation ministry is expected to furnish the grounds on which the decisions were made regarding permission granted to the new airline to operate.
The PMO’s move comes after certain reservations expressed by BJP leader Subramanian Swamy on the matter.
Start-up carrier AirAsia India — a joint venture between Malaysia-based low-cost carrier AirAsia, Tata Sons Ltd and Arun Bhatia of Telestra Tradeplace Private Limited — recently got the licence from aviation regulator DGCA to operate in India.
The airline was granted the licence subject to the final outcome of cases opposing grant of the permit in the Delhi High Court. The new airline was granted permission to operate in India under the new FDI law that allows a foreign airline to pick up stake in an Indian carrier upto 49 per cent.
Tony blames Indigo
Bringing its fight with rival IndiGo out in the open, AirAsia group chief Tony Fernandes on Tuesday tweeted that any attempt to oppose the entry of AirAsia’s Indian JV would make the new carrier “stronger and smarter”.
“@tonyfenandes: @mittuchandilya exciting plans for Airasia India. Whatever Indigo tries to do to stop us it just makes us stronger and smarter. Well done,” Mr Fernandes tweeted. Mittu Chandilya, the CEO of AirAsia India, was however silent. There was no response from budget airline IndiGo also.