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Malaysian budget carrier AirAsia’s Indian subsidiary has sought the government’s permission to launch its operations. |
The low cost carrier (LCC) filed an application with the civil aviation ministry on April 23 to start its India operations, official sources said yesterday.
The airline started the process of hiring pilots and cabin crew earlier this month.
The company in its application said it proposed to start operations with a few aircraft and eventually operate around 37 in the next five years.
Earlier, the LCC had said that it will operate from Chennai and focus on providing connectivity to tier-II and -III cities. It plans to start operations by the end of this year.
In its proposal to the Foreign Investment Promotion Board (FIPB), AirAsia said it intended to hold 49% stake in the joint venture (JV), while Tata Sons will hold a 30% stake and the Arun Bhatia-promoted Telestra Tradeplace 21%.
On March 26, the government had approved the budget carrier’s proposal to set up a new airline on the recommendation of the FIPB.
The approval has allowed the budget carrier to roll out the seventh scheduled domestic carrier in the Indian skies, after receiving regulatory clearance from the civil aviation ministry.
Currently, there are six domestic airlines in the country - Air India, Jet Airways, Jet Lite, SpiceJet, IndiGo and GoAir. The operating licence of Kingfisher Airlines was suspended last year.
The approval had come after a change in the foreign capital investment in Indian domestic aviation sector initiated by the government last year by allowing foreign airlines to invest up to 49% in private domestic carriers.