New Delhi: The founder of low cost flying in India — Captain G R Gopinath of Air Deccan fame — has decided to keep his application for launching a new budget airline here on hold. The ex-armyman will first see the fate of the AirAsia-Tata Sons joint venture startup's fate before moving with his papers.
After getting Foreign Investment Promotion Board nod, AirAsia on Tuesday filed a formal application with the aviation ministry to seek clearance for starting the Indian subsidiary. The airline plans to start operations with three to four planes and take the number to 37 in next five years.
"The aviation ministry feels that last September when the government relaxed foreign direct investment in the sector, it allowed foreign airlines to invest in local ones. So the government will have to clarify that even start-ups are allowed under the relaxed FDI norms," said sources.
29/04/13 Saurabh Sinha/Times of India
