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DGCA gives clean chit to AirAsia India

Regulator says commercial agreement with AirAsia Malaysia doesn't violate norms

Arindam Majumder  |  New Delhi 

AirAsia India in full compliance with Aircraft Rule 1937: DGCA

The Directorate General of Civil Aviation (DGCA) has decided that a commercial agreement between and its Malaysian part-parent, AirAsia Berhad, does not violate the of the land.

The has concluded the nature of the agreement is in full compliance with the Aircraft Rule, 1937, which governs aviation here. And, that no terms or conditions of the Brand Licensing Agreement dilutes the substantial ownership and effective control (SOEC) clauses regarding

The regulator’s view essentially eliminates chances of an adverse court ruling, which would have put the airline’s future in question and even have led to suspension of its licence. 

The high court in Delhi had asked to send its brand licensing agreement to for examining. The case was filed by Subramanian Swamy, ruling party MP and the Federation of Indian Airlines, comprising the older entities in the segment. They’d both contended the agreement violated the condition on SOEC, which says control of an should be in India and be run by Indian nationals.

The agreement signed between Bo Lingam, operations head of AirAsia Bhd and on behalf of mandates that the latter strictly complies with the parent airline’s requirements on various operational aspects. These include branding, catering, inflight services, engineering, finance, flight operations, marketing and network planning.

“I do not find that the terms and conditions laid down dilute substantial and effective control of being vested with Indian nationals. Further status of the AOP (air operator permit) issued to doesn’t change,” chief wrote.

Asked by this newspaper, AirAsia group chief executive said the was fair to the

“We have had non-stop attacks since launching the But, the team has remained focused in its job. We didn’t get sidetracked by the noise which was previously driven by our competitors. I thank the Indian for being fair.” 

Bhullar says AirAsia Bhd’s guidelines regarding services like ancillaries, branding and inflight services ensure passengers have the same standard of service when they fly across the world. 

Regarding flight operations of the being controlled from Malaysia, the feels this is according to the operations manual of and executives have been appointed who can be held accountable in case of non-compliance.

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DGCA gives clean chit to AirAsia India

Regulator says commercial agreement with AirAsia Malaysia doesn't violate norms

Regulator says commercial agreement with AirAsia Malaysia doesn't violate norms
The Directorate General of Civil Aviation (DGCA) has decided that a commercial agreement between and its Malaysian part-parent, AirAsia Berhad, does not violate the of the land.

The has concluded the nature of the agreement is in full compliance with the Aircraft Rule, 1937, which governs aviation here. And, that no terms or conditions of the Brand Licensing Agreement dilutes the substantial ownership and effective control (SOEC) clauses regarding

The regulator’s view essentially eliminates chances of an adverse court ruling, which would have put the airline’s future in question and even have led to suspension of its licence. 

The high court in Delhi had asked to send its brand licensing agreement to for examining. The case was filed by Subramanian Swamy, ruling party MP and the Federation of Indian Airlines, comprising the older entities in the segment. They’d both contended the agreement violated the condition on SOEC, which says control of an should be in India and be run by Indian nationals.

The agreement signed between Bo Lingam, operations head of AirAsia Bhd and on behalf of mandates that the latter strictly complies with the parent airline’s requirements on various operational aspects. These include branding, catering, inflight services, engineering, finance, flight operations, marketing and network planning.

“I do not find that the terms and conditions laid down dilute substantial and effective control of being vested with Indian nationals. Further status of the AOP (air operator permit) issued to doesn’t change,” chief wrote.

Asked by this newspaper, AirAsia group chief executive said the was fair to the

“We have had non-stop attacks since launching the But, the team has remained focused in its job. We didn’t get sidetracked by the noise which was previously driven by our competitors. I thank the Indian for being fair.” 

Bhullar says AirAsia Bhd’s guidelines regarding services like ancillaries, branding and inflight services ensure passengers have the same standard of service when they fly across the world. 

Regarding flight operations of the being controlled from Malaysia, the feels this is according to the operations manual of and executives have been appointed who can be held accountable in case of non-compliance.

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Business Standard
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DGCA gives clean chit to AirAsia India

Regulator says commercial agreement with AirAsia Malaysia doesn't violate norms

The Directorate General of Civil Aviation (DGCA) has decided that a commercial agreement between and its Malaysian part-parent, AirAsia Berhad, does not violate the of the land.

The has concluded the nature of the agreement is in full compliance with the Aircraft Rule, 1937, which governs aviation here. And, that no terms or conditions of the Brand Licensing Agreement dilutes the substantial ownership and effective control (SOEC) clauses regarding

The regulator’s view essentially eliminates chances of an adverse court ruling, which would have put the airline’s future in question and even have led to suspension of its licence. 

The high court in Delhi had asked to send its brand licensing agreement to for examining. The case was filed by Subramanian Swamy, ruling party MP and the Federation of Indian Airlines, comprising the older entities in the segment. They’d both contended the agreement violated the condition on SOEC, which says control of an should be in India and be run by Indian nationals.

The agreement signed between Bo Lingam, operations head of AirAsia Bhd and on behalf of mandates that the latter strictly complies with the parent airline’s requirements on various operational aspects. These include branding, catering, inflight services, engineering, finance, flight operations, marketing and network planning.

“I do not find that the terms and conditions laid down dilute substantial and effective control of being vested with Indian nationals. Further status of the AOP (air operator permit) issued to doesn’t change,” chief wrote.

Asked by this newspaper, AirAsia group chief executive said the was fair to the

“We have had non-stop attacks since launching the But, the team has remained focused in its job. We didn’t get sidetracked by the noise which was previously driven by our competitors. I thank the Indian for being fair.” 

Bhullar says AirAsia Bhd’s guidelines regarding services like ancillaries, branding and inflight services ensure passengers have the same standard of service when they fly across the world. 

Regarding flight operations of the being controlled from Malaysia, the feels this is according to the operations manual of and executives have been appointed who can be held accountable in case of non-compliance.

image
Business Standard
177 22