AirAsia takes Tatas back to skies in three-way JV for budget airline
Tata Sons said that it will be “merely an investor” in the proposed joint venture and will not have any operating role. However, it will nominate two executive directors to the board of the proposed joint venture company. Further, the proposed airline would not use the Tata brand name.
The development marks the first major decision of the group under its new chairman Cyrus P Mistry.
“AirAsia Berhad through its investment arm, AirAsia Investment has submitted an application to the Indian Foreign Investment Promotion Board to seek approval for AAIL to invest 49% into a proposed joint venture together with Tata Sons Ltd and Arun Bhatia of Telestra Tradeplace Pvt Ltd,” the Malaysian low-cost carrier said in a statement to the Kuala Lampur stock exchange on Wednesday.
AirAsia said the joint venture will approach the Directorate General of Civil Aviation for an air operators permit once the FIPB approves its application.
“The parties have signed a Memorandum of Agreement that details high-level terms with regards to the proposed partnership including the