AirAsia gets government NOC to launch operations

Now, airline to apply to DGCA for operational permit

Malaysian low cost brand AirAsia cleared another  hurdle for launching its domestic airline in India. The civil aviation ministry on Friday granted a no objection clearance to AirAsia for launch of operations. Now the airline will have to apply to the Directorate General of Civil Aviation for an operator permit.

 

The clearance came on the day when AirAsia India's equity investor and Delhi based industrialist Arun Bhatia hit out against co-owner Tata Group's alliance with Singapore Airlines. AirAsia India which will be based in Chennai is co-owned AirAsia (49%), Tata group (30 percent) and Arun Bhatia's Telestra Tradeplace (21%)

 

 

A civil aviation ministry official said minister Ajit Singh approved the proposal within a week of the airline receiving a security clearance from the home ministry. While AirAsia has been targeting December to start  its India operations the launch may be delayed as the DGCA rules require  licence applicants applicants to apply three months in advance before the intended date of operations.

 

BJP leader Subramanian Swamy's petition in Delhi High Court challenging the government permission to the airline could also create complications. The Delhi High Court has issued notice to the Centre asking it to respond to the petition by October 30. Swamy's contention is the government clearance to the airline violates the foreign direct investment norms which allow investment in an existing airline and not a greenfield airline. Swamy, in his petition, also said  that FDI policy requires that "effective control" of the joint venture will be vested with Indian nationals and in case of AirAsia India it is vested with the foreign airline.

 

An AirAsia spokesperson  had earlier said "the launch date fully depends on when we get permissions from the government