AirAsia may start India operations in June this year
AirAsia, the largest Southeast Asian low-fare carrier, can kick off its Indian operations sometime in June, a person with direct knowledge of the development said.
Speaking on the condition of anonymity, the person said, "AirAsia is currently preparing a ground so that as soon as the FIPB (Foreign Investment Promotion Board) clearance comes they should be able to launch operations."
Last month, AirAsia announced a joint venture with the Tata Group and Arun Bhatia of Telestra Tradeplace to establish a low-fare carrier in India.
The FIPB, which approves foreign investors' investment proposals, is currently inspecting Kuala Lumpur-headquartered AirAsia's proposal for the low-fare airline.
AirAsia has also reportedly decided on the names of key officials for the upcoming low-fare airline, and the names will be submitted to the Director General of Civil Aviation immediately after the FIPB approves the proposal. The FIPB is expected to take a decision on the proposal on March 6.
The person quoted above also claimed that AirAsia's top officials held a meeting with officials of India's civil aviation ministry and discussed a plan to kick off operations early.
In the JV airline, AirAsia will hold a 49 per cent stake, the Tata Group will have 30 per cent stake, while Bhatia will hold the rest.