Indian residents have effective control of AirAsia India: Airline

Low-cost airline AirAsia India on Friday sought to clarify that its substantial ownership and effective control is with Indian residents and a section of media has grossly misreported the brand license agreement with Malaysia's AirAsia Berhad.

"We wish to point out that clause 5.30 of the agreement explicitly states that asubstantial ownership and effective control of the licensee (AirAsia India) remains at all times with Indian residents," said a statement by the line.

And as the licensee, the airline said it is not obliged to execute any act or omission leading to a breach of the provisions of this clause.

Its response came in the wake of some recent reports in the Indian media which said AirAsia Berhad has the final say in the decision making, violating Indian rules and regulations.

The brand license agreement entered with AirAsia India is consistent with other similar ventures AirAsia Berhad (Bhd) executed elsewhere in the world, it said.

"AirAsia Bhd has created a world renowned brand name, and like any other corporate with strong brand equity, the company ensures that all legal entities that operate with this name anywhere in the world are subject to strict requirements for protection of our brand and reputation," it said, adding it is "shocked and surprised" by the opposition it is facing in India from "vested interests" to block its endeavour of offering competitive services and fares to consumers.

"The constant attack on AirAsia, especially by certain members of media has saddened me but we will prevail. It is time for India to end patronage and put people first. We remain committed and determined and together with my staff, we will see this dream through," said Group CEO Tony Fernandes in the statement.

He said he had met Prime Minister Narendra Modi who promised fairness and transperancy.

The airline stressed it is fully complying with Indian regulations.

"All the important decisions concerning the day-to-day operations of the airline are taken by the management team of the airline under the overall supervision, control, and direction of the board of directors (which include a majority of Indian nationals). The board is chaired by long-time Tata veteran, Mr.S Ramadorai," said the statement.

AirAsia X, Thai AirAsia, Indonesia AirAsia, AirAsia Philippines, AirAsia India and AirAsia Japan are the subsidiaries of AirAsia Berhad.