Promoters of the upcoming budget airline to be set up by AirAsia-Tata-Bhatia joint venture will not be surrender their shareholding to any other entity, according to the terms & conditions of the agreement.

The JV agreement binds all the promoters under an exclusivity clause that prevents them from giving up their shareholding to any other entity including forging a partnership with a domestic carrier during the term of the JV.

The exclusivity clause states, "AirAsia Berhad, AirAsia India Ltd and their affiliates shall not directly or indirectly initiate. accept any offer or inquiry from any person regarding an investment, partnership, participation, association, brand licensing with any person in India engaged in the business."

However, the terms of the Memorandum of Agreement allows Tata Sons and the Bhatia's Telestra Tradeplace to pick up 5 per cent stake in any carrier if the investments are made in cooperation without receiving any management control in the target firm.

The terms of the agreement clearly aims to ensure provide more durability to the JV.

The JV aims to create a new low-fare airline, which will be based in Chennai, India. AirAsia, the biggest budget airline in Southeast Asia by fleet size, will hold 49 per cent stake in the new low-fare airline; while Tata and Arun Bhatia will hold 30 per cent and 21 per cent stake, respectively.