The Union government on March 26 stated that it had cleared Malaysian budget carrier AirAsia’s proposal to start a passenger airline in India in partnership with the Tata Group, with an investment of Rs 81 crore. The proposal was cleared by the Foreign Investment Promotion Board (FIPB).
AirAsia recently said it would set up a 49:30:21 joint venture with the Tata Sons and Telestra Tradeplace of Indian investor Arun Bhatia to launch an Indian airline.
The FIPB clearance was granted in line with the policy which allowed up to 49 per cent foreign direct investment (FDI) by a foreign carrier in an Indian airline.
AirAsia is the first foreign airline to set up a joint venture in the Indian passenger airline segment after liberalisation of the FDI policy in the sector last September. Following the FIPB clearance, the AirAsia joint venture would now have to approach the DGCA for further clearances and a scheduled air operator's permit.