AirAsia India's Tony Fernandes softens Tata Sons, Singapore Airlines deal stand

Written by PTI | Chennai | Updated: Sep 29 2013, 00:55am hrs
Ratan Tata-Tony FernandesAirAsia India, the jv between Tata Group and AirAsia, has been granted no-objection certificate by the ministry of civil aviation, taking the airline closer to take-off.
Clearing the air with regard to Tata Sons signing MoU with Singapore Airlines, AirAsia Group CEO Tony Fernandes on Saturday said there was no issue between him, Singapore Airlines and Tatas.

"I have and continue to have no issue on SIA (Singapore Airlines) and Tata Sons. No difference to Ginger and Taj Hotels. These are two very separate business," Fernandes said in social networking portal -- Twitter.

Related: With NOC, AirAsia India inches closer to take-off

Tata Sons, the holding company of the Tata Group, signed a memorandum of understanding with Singapore Airlines for a joint venture to start a new full service airline in India

The new venture, to be called Tata Singapore Airlines, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with USD 49 million of foreign direct investment.

Singapore Airlines deal: AirAsia India director accuses Tata Group of being unethical

Meanwhile, the AirAsia India's first board meeting is scheduled to be held in Mumbai later today.

Commenting about it, Tony Fernandes said, "first AirAsia India Board meeting. Superb cooperation between partners. I am confident we will make profits in first year and change aviation".

However, Fernandes would skip the board meeting as he was in Indonesia. "In Jakarta. Good Quarter. Adding more aircraft to Indonesia", he said.

AirAsia India on Thursday had announced that it has been granted no-objection certificate by the ministry of civil aviation, taking the airline closer to take-off. Armed with the NOC, AirAsia India will now begin the process of obtaining the air operating permit and prepare to kick-start its operations.

AirAsia had submitted a request to start a joint venture to begin AirAsia India earlier this year, partnering Tata Sons and Arun Bhatia of Telestra Tradeplace. It was granted a formal approval by the Foreign Investment Promotion Board (FIPB) two months later in April.

I am thrilled to announce that AirAsia India has received NOC approval from the government of India. Very exciting and hugely profitable: AirAsia CEO Tony Fernandes had said.