Tata Sons, AirAsia, Telestra seek to ink Indian airline JV - Cyrus Mistry hand seen
AirAsia has applied to Foreign Investment Promotion Board (FIPB) to take 49 per cent 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 per cent 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.
More than a decade back, it had joined Singapore Airlines to bid for a stake in Air India. The plan did not materialise as the government dropped disinvestment plans due to stiff political opposition.
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
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