AirAsia India today said it has received a 'No Objection Certificate' from the Ministry of Civil Aviation.
Though NOC was issued by the ministry last week, this was the first formal statement by the airline. AirAsia Chief Tony Fernandes tweeted, "I am thrilled to announce that Airasia India has received NOC approval from the government of India. Very exciting and hugely profitable."
AirAsia India would now have to apply to the Directorate General of Civil Aviation (DGCA) for its Scheduled Operator's Permit (SOP or the flying permit), which is the final step before it can start operations.
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The DGCA grants the SOP after assessing the preparedness of a start-up airline to launch flights by examining issues like availability of aircraft, manpower to operate flights as well as on the ground, aircraft parking space at airports and engineering facilities.
The NOC would also enable AirAsia India to import the first of the three aircraft to Chennai, which would be its headquarters.
AirAsia India, a joint venture between the Malaysian airline AirAsia (which would own 49 per cent stake), the Tatas (30 per cent) and the Telstra Tradeplace owned by Arun Bhatia (21 per cent), plans to start operations within this financial year itself. It has a fleet of three A320 and 200 employees including pilots, engineers and ground staff.
Mittu Chandilya, chief executive officer, AirAsia said "This is the fastest an NOC has been granted and with this, we will focus on obtaining the Air Operating Permit. We will continue with our preparations and get ourselves ready for take-off once the Air Operating Permit is acquired."
He said the new airline would "look forward towards being one of the dynamic contributors to the development of the Indian aviation industry."
The statement said AirAsia India was "confident that it will be able to replicate the success of its counterparts in Malaysia, Thailand and Indonesia, enabling people to fly affordably through superior operational performance by emphasizing a focused and disciplined cost structure which will tremendously benefit the Indian consumer."
Currently, AirAsia connects Chennai, Bangalore, Tiruchirappalli, Kochi and Kolkata in India to Thailand and Malaysia.