Putting an end to all questions on the AirAsia deal, Civil Aviation Minister Ajit Singh said the matter has now been resolved and his Ministry will provide the all necessary clearances.
“The company has applied for no objection certificate (NOC). And AirAsia Director’s name has been sent for security clearances by the Aviation Ministry,” Singh told Business Line .
The Minister said that the Aviation Ministry will give clearance to AirAsia-Tata venture after the security formalities are done. The company had earlier indicated that it hoped to begin operations by September.
The Tata group along with a Delhi-based investor has joined hands with Malaysia-based AirAsia, promoted by Tony Fernandes, to start a scheduled airline in India.
The application for the venture was submitted after the Government tweaked the norms for foreign direct investment in the aviation sector. Now, foreign airlines have been permitted to acquire up to 49 per cent equity in domestic airlines.
Although the foreign investment promotion board had given its nod for the proposal, the Civil Aviation Ministry had raised some questions.
The Ministry believed that the wording of the policy implied norms for existing airlines and not for those yet to begin operations.
The AirAsia-Tata venture falls in the latter category.
Talking about the Jet Airways-Etihad deal, the Minister said the market regulator SEBI was looking into the deal structure.
Gulf-based Etihad has proposed to acquire 24 per cent equity in Jet Airways and the deal is approximately worth Rs 2,060 crore. FIPB is expected to take up the matter on Tuesday.
Talking about Kingfisher Airlines, Singh said that the airline is yet to submit a viable revival plan.
“Until and unless it (plan) is submitted, nothing can be said,” he said.
shishir.sinha@thehindu.co.in
(The correspondent is in London at the invitation of Air India.)