Cloudy
-3°CSat :Cloudy. High: 4 Low: -2

AirAsia to invest $50 million to launch airline service in India

AirAsia to invest $50 million to launch airline service in India

Kuala Lumpur/New Delhi: Malaysian carrier AirAsia, Asia’s biggest budget airline, Thursday said that it will invest USD 50 million to start a joint venture in India with the Tata Group, as per media reports.

The new airline is likely to start operations in the fourth quarter of this year CEO Tony Fernandes said.

AirAsia, Tatas and Hindustan Aviation of Bhatias have signed a partnership agreement for the venture.

AirAsia has applied to Foreign Investment Promotion Board (FIPB) to take 49 percent in a venture with Tata Sons Ltd and Arun Bhatia’s Telestra Tradeplace Pvt Ltd, the low-fare carrier said in a statement.

Once approved, they will seek an air operators permit.

The move follows government’s recent decision to allow foreign carriers to invest in Indian airlines.

Tata Sons, the holding company of the USD 100 billion salt-to-software conglomerate, will hold 30 percent in the joint venture but will not have any operating role in the airline.

This will mark the return of Tata to aviation. State- owned Air India had grown out of Tata Airlines, which began flights in 1932.

The proposed joint venture will operate from Chennai and will focus on providing domestic connectivity to Tier-II and Tier-III cities, statement by the Malaysian carrier from its headquarters in Sepang said.

As per current rules, a carrier must complete five years of domestic operations before becoming eligible for starting overseas flights.

AirAsia, through its operations based in Thailand and Malaysia, flies to Chennai, Bangalore, Kochi, Tiruchirappalli and Kolkata in addition to 20 countries across Asia.

 

Top Stories

jaitley

Arun Jaitley says govt resolved to changes; cautions obstructionists

December-20-2014
New Delhi: Finance pastor Arun Jaitley on Saturday said definitive approach making will be key to maintain the believability of the Indian
SBI_5_0_0_0_0_0_0_0

SBI opens 385 digital technology learning centres across the country

December-20-2014
State Bank of India (SBI) has dispatched SBI’s 385 advanced innovation learning focuses the nation over to cover 15,000 clients of the
Amit-pardaphash-166288

Amit Shah takes a burrow at Rahul Gandhi, says he is wearing Italian glasses

December-20-2014
New Delhi: Bharatiya Janata Party president Amit Shah on Friday took a burrow at Congress’ VP Rahul Gandhi and said that he
304895-khabragade700

Devyani Khobragade stripped of her obligations, put on ‘obligatory hold up’

December-20-2014
New Delhi: The administration has peeled off representative Devyani Khobragade from her obligations in the Ministry of External Affairs, days after she
Dimpy-Pretam

Bigg Boss 8 Breaking With Salman Khan: Dimpy And Pritam’s Ugly Fight

December-19-2014
Bigg Boss 8 the most questionable reality show. Presently at the Bigg Boss 8 house, there is another assignment. In this errand
Anushka-Sharma-in-Police-Avatar-in-The-New-Motion-Poster-of-P.K.

“PK” (Peekay) – Movie Review: Aamir Khan-Anushka Sharma’s Chemistry Impresses Viewers

December-19-2014
Rajkumar Hirani’s “PK” (Peekay), which is the last exceptionally anticipated Bollywood film of 2014, has discharged in theaters in the global markets