In the first announcement since the FDI policy for aviation was liberalised, Malaysian carrier AirAsia today said it has sought government’s nod to launch a new Indian airline and has set up a joint venture with Tata Group, as well as an investment firm for the purpose.
The budget carrier AirAsia Berhad said its investment arm AirAsia Investment (AAIL) “has submitted an application to the Foreign Investment Promotion Board (FIPB) to seek approval for AAIL to invest 49 per cent in a proposed joint venture with Tata Sons and Arun Bhatia of Telestra Tradeplace”.
The news comes two months after Air Asia denied it was bidding for a stake in no-frills carrier SpiceJet. “Subject to FIPB approval, the proposed joint venture company will make an application to Indian aviation regulators for the Air Operators Permit,” the Malaysian carrier said in a statement from its headquarters in Sepang.
The joint venture plans to operate from Chennai and will focus on providing domestic connectivity to Tier-II and Tier-III cities, it said. AirAsia, through its operations based in Thailand and Malaysia, flies to Chennai, Bengaluru, Kochi, Tiruchirappalli and Kolkata from several destinations in the ASEAN region.