Tata-SIA deal 'no issue for AirAsia India'

There is a superb cooperation between partners: Tony Fernandes

Tata Group and Malaysia’s AirAsia, lead partners in a proposed domestic low-cost airline, on Saturday said there were no differences among the shareholders over the former’s tie-up with Singapore Airlines (SIA) for lanching a full service carrier.

The board of AirAsia India, as the Tata-AirAsia venture is called, met in Mumbai on Saturday, a week after co-investor Arun Bhatia hit out at Tata Group for keeping him in dark regarding its SIA joint venture. Tata Sons owns a 30 per cent stake in Air Asia India, while AirAsia and Bhatia’s Telestra Tradeplace have 49 per cent and 21 per cent, respectively. A Tata Group spokesperson as well as Mittu Chandilya, Air Asia India’s chief executive, however, maintained that the issue of Bhatia's opposition to Tata-SIA partnership and his purported threat to buy Tata Sons’ stake in the carrier did not come up for talks in the meeting.

“It was a regular board meeting and we discussed operational plans. We have received a no-objection certificate from the ministry (of civil aviation). I am still aiming for a December launch, but it will be tight,” Chandilya said. He added the airline would not cut corners on safety issues and be prepared to delay launch.  

AirAsia Group chief executive Tony Fernandes, who had kept mum on the Tata-SIA tie-up tweeted on Saturday he had no issues with the proposed joint venture. There is a “superb co-operation between partners” and AirAsia India will make profit from the first year and change aviation, he added.

“I have (had no issue) and continue to have no issue on SIA (Singapore Airlines) and Tatas. No difference to Ginger and Taj hotels. These are two very separate business,” Fernandes tweeted on Saturday afternoon. He participated in the board meeting via a video link as he was in Jakarta, Indonesia.

“Mr Fernandes’ tweet said it all,” a Tata group spokesperson said and dismissed claims about rift among partners. AirAsia India, which received the no-objection certificate from the civil aviation ministry last week, now needs a permit from the Directorate General of Civil Aviation before it could start operations. The announcement of Tata-SIA venture, the Tata group's second investment in an airline venture in a matter of months, led to a criticism of conflict of interest. The Tata Group, however, denied those charges.