Tata's flight with SIA likely to be delayed

Both start-ups involved in securing regulatory clearances

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Even as Tata Sons’ airline venture with AirAsia Berhad is likely to start operating in the country shortly, its partnership with Singapore Airlines is unlikely to take off anytime soon, with regulatory clearances still awaited.

While the Directorate General of Civil Aviation (DGCA) said it would soon issue an air operator’s permit to AirAsia India, applications are pending with the Ministry of Home Affairs (MHA) for security clearance to three directors on the board of Tata-SIA — Prasad Menon, Mukund Rajan and Mak Swee Wah. Tata-SIA applied for a no-objection certificate (NOC) from the Ministry of Civil Aviation in the last week of December. Subsequently, the ministry had forwarded the applications to the Ministry of Home Affairs.

Tata-SIA has finalised a team to head its India operations. This includes Phee Teik Yeoh (divisional vice-president, IT, SIA) and former general-manager (India) Glamming Toh. However, the recruitment of pilots and other employees is pending. (STATUS CHECK)

A Tata-SIA spokesperson said, “Usually, it takes up to two months from the time of application to get approval from the ministry. Only after we receive an NOC can we begin the process to import aircraft. We are interviewing pilots and other employees, but have not hired anyone. Recruiting people at this point of time will only add to our payrolls.”

According to senior government officials, Tata-SIA is likely to start operations with four A320s and an employee strength of 400-450. Earlier, the airline had indicated it would start operations by mid-2014. But as approvals from the aviation ministry are pending, the airline can apply to DGCA for an air operator’s permit only after that. Experts say commercial operations are unlikely before the winter schedule of 2014.

Last month, in an unprecedented move, the DGCA invoked a clause under Aircraft Rules, 1937, seeking objections from the public before issuing a scheduled operator’s permit to Tata’s other airline venture with AirAsia. “We have to review the objections we receive and address them on a case-by-case basis before we can issue an airline operator’s permit to AirAsia,” said a senior DGCA official. Among others, the regulator has received objections from Bharatiya Janata Party member of Parliament Subramanian Swamy and former directors of Air India. A decision on the matter is expected this month.

AirAsia chief executive Mittu Chandilya will manage the airline’s operations and the associated administrative and supporting activities, including maintenance. He will be aided by his core team of head of flight operations Amit Singh, head of engineering Gajapathy Sampath, head of commercial marketing Amisha Sethi and finance chief Vijay Gopalan.

Recently, at the World Economic Forum in Davos, AirAsia chief Tony Fernandes had said he was hopeful of starting operations in India by April. The airline is looking at starting with three aircraft and initial staff-strength of 470, with operational base in Chennai. However, given it has recruited only about 220 employees so far, as well as the regulatory uncertainties, insiders say the schedule is unrealistic. Centre for Asia Pacific Aviation says if approvals were delayed till mid-year, AirAsia India is likely to begin operations in September/October.