HC refuses to stay AirAsia India flying permit

A plea was filed by the Federation of Indian Airlines against DGCA's decision

The high court here on Friday refused to stay the grant of a flying licence to new airline AirAsia India by regulator Directorate General of Civil Aviation (DGCA).

A bench disposed an application by the Federation of Indian Airlines (FIA), saying there was no urgency as the flying permit will be subject to the outcome of the petition challenging the approvals being granted to the AirAsia India deal, to be heard on July 11. "Just because the situation has changed a little bit does not mean a fresh cause of action has to be initiated," it said.

AirAsia India was granted the licence on Wednesday.

Chief Executive Mittu Chandilya had said, "We will be launching flights in two to three months. We would soon be filing our flight schedules for approval by the DGCA. After the approval, we would seek slots at the airports."

The court had on Thursday agreed to hear FIA’s plea. The interim application by FIA had sought to restrain AirAsia India from starting its scheduled air transport operations during the pendency of the petition.

The plea had sought "to restrain the Centre from granting any decision or grant of any further approvals/ permissions/NOC/permits in favour of AirAsia India".

The petition had filed that a direction be issued to DGCA to restrain AirAsia India from scheduling flights and selling tickets to the passengers. It had said the grant of air operator’s permit was in "complete defiance of this court's order as the matter is sub judice". The court had last Thursday decided to form a special bench to hear pleas seeking quashing of approvals being granted by the Centre to operationalise the $30-million deal between Tata Sons and Malaysia-based AirAsia.

FIA has filed two separate petitions challenging the approvals being granted to AirAsia India and Tata-SIA Airlines deals, respectively. Bharatiya Janata Party leader Subramanian Swamy has filed a public interest suit opposing the clearance granted to the deal.

Swamy and FIA are opposing clearance to the deal on the ground that according to government policy, foreign direct investment (FDI) upto 49 per cent is allowed in existing airlines which are already in operation and not to new or proposed joint ventures.

Tata-SIA Airlines Ltd is a joint venture between Tata and Singapore Airlines and AirAsia India is a joint venture between Tata Sons and Malaysia-based AirAsia.