News from New Delhi :
Ratan Tata said that there is a different type of enterprise
which Fernandes is bringing. Hopefully, it will spread air travel across India
and give a new dimension (to the aviation sector). The Tata Group is pleased to
be associated with it. When asked about the long gap after which Tatas were
making a foray into aviation despite flying being a passion with him, he said:
"We didn't come earlier because we chose to stay out."
The joint venture of
Malaysian low-cost carrier AirAsia and Tata Group may take off soon in
Indian skies. On Tuesday, Tata Group chairman emeritus Ratan
Tata and
LCC chief Tony Fernandes met aviation minister Ajit Singh. After the meeting
Singh said AirAsia India had applied for a no-objection certificate and the
process of clearing all required steps "will not take too long."
Tata, Tony meet civil aviation minister. Fernandes, who was also accompanied by new AirAsia India CEO Mittu Chandilya, said the meeting with Singh was "to apprise the minister about the developments that have taken place and our visit to Chennai (the proposed airline's headquarters)." Fernandes promised low fares on his India JV, despite the inherently high cost structure. "We think we will be able to reduce fares by increasing volumes, creating an economic stimulus and creating more jobs. Almost 50% of the air travel market is between Delhi and Mumbai. We will try to rebalance that so that India has a more equal distribution of air traffic. We have a much better understanding of the market in the south," he said. While AirAsia will be based in Chennai, the operational bases could be at Chennai, Bangalore or Kochi.
Tata, Tony meet civil aviation minister. Fernandes, who was also accompanied by new AirAsia India CEO Mittu Chandilya, said the meeting with Singh was "to apprise the minister about the developments that have taken place and our visit to Chennai (the proposed airline's headquarters)." Fernandes promised low fares on his India JV, despite the inherently high cost structure. "We think we will be able to reduce fares by increasing volumes, creating an economic stimulus and creating more jobs. Almost 50% of the air travel market is between Delhi and Mumbai. We will try to rebalance that so that India has a more equal distribution of air traffic. We have a much better understanding of the market in the south," he said. While AirAsia will be based in Chennai, the operational bases could be at Chennai, Bangalore or Kochi.
Ajit Singh said the names of
AirAsia India's airline's top brass had been sent to the home ministry for
security clearance. "They are working on that. When they get security
clearance, they will apply to the DGCA (for flying permit). I don't expect that
it will take too long," he said. Tata, Fernandes and Chandilya also met
commerce minister Anand Sharma.
AirAsia India is a JV between AirAsia, Tata Group and Telestra TradePlace with they having a 49%, 30% and 21% stake each, respectively. The Foreign Investment Promotion Board had cleared this proposal in March.
AirAsia India is a JV between AirAsia, Tata Group and Telestra TradePlace with they having a 49%, 30% and 21% stake each, respectively. The Foreign Investment Promotion Board had cleared this proposal in March.