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India,Malaysia : GOVERNMENT granted approval to the proposals of AIRASIA
Publish Date : 10-Apr-2013
The Government of India has sent an official letter to AirAsia in order to inform the later that its plan for the establishment of a local carrier has been given green signal, facilitating the company to proceed with the aviation licencing procedure.
AirAsia has revealed in a statement that the company has received the formal endorsement on Thursday (4th April, 2013). The statement added, "This approval will enable AirAsia (India) Private Ltd to apply with the Directorate General of Civil Aviation for the aviation licence to operate as an Indian airline."
The Ministry of Finance, Government of India, previously released a media statement to reveal that the Government had approved numerous foreign direct investment (FDI) plans, including the offer of AirAsia – the largest low-cost carrier in Asia.
The planned airline is likely to start scheduled operations in late 2013.
The new domestic carrier is a joint venture involving AirAsia, Tata Sons, and Telestra Tradeplace Pvt Ltd, which is led by Arun Bhatia.
The JV airline has strategy to run operations from Chennai to serve Tier II and Tier III cities of India.
The AirAsia CEO Tony Fernandes has stated recently that the Malaysia-based company will make around $30-55 million investments in the planned venture in the beginning and will launch services via deployment of an aircraft fleet of three to four Airbus A-320s.
AirAsia uses 118 aircraft to manage its operations. It operates 63 services per week to the Indian cities of Chennai, Tiruchi, Kochi, Kolkata and Bangalore from Kuala Lumpur and Bangkok.
Analysts believe that the gigantic size of the Indian market has attracted the attention of AirAsia.
The UAE-based Etihad Airways, the third-biggest Gulf airline, is also in preparation to partner India's leading private sector carrier - Jet Airways to tap the Indian market.
