Tata Sons says it effectively controls Vistara, AirAsia

FIA has said ownership and control norms were being flouted by the foreign partners of both

Tata Sons on Wednesday said effective control of AirAsia and Vistara was with Indian entities, denying claims by competing airlines that the two new carriers were controlled from abroad.

"All the important decisions concerning the day-to-day operations of the airlines are taken by the management teams of these airlines under the overall supervision, control, and direction of the respective boards of directors, which include a majority of Indian nationals," said a Tata Sons statement.

IndiGo, Jet Airways, SpiceJet and GoAir, under the umbrella of the Federation of Indian Airlines (FIA), have said ownership and control norms were being flouted by the foreign partners of Vistara and AirAsia.

"The chief executive of AirAsia has resigned on the grounds of interference from Tony Fernandes, CEO of . It is also evident from the statements of the chief executive of Vistara, a virtual nominee of Singapore Airlines," the FIA said.

A war of words has broken out between the two camps after Ratan Tata, chairman emeritus of Tata Sons, said the older airlines were lobbying for protectionism.

Tata's statement was over the rule that requires Indian airlines to fly on domestic routes for five years and have a fleet of 20 aircraft before they can fly abroad.

The new aviation policy wants to abolish this rule and it will allow AirAsia and Vistara to fly abroad immediately.

Tata Sons on Wednesday said that the removing the rule would boost international traffic to and from India to over 100 million passengers by FY 2021, from 43 million in FY 2014

"The 5/20 rule has thus far principally benefited only foreign airlines, who have captured 70 per cent of the international traffic with India. This has also resulted in poor utilisation of bilateral air traffic rights by Indian operators. This would stimulate the domestic market, and the resultant growth would help all domestic carriers," the company said.