Friday, August 16, 2013

Security clearance issue may delay AirAsia India launch

AirAsia India will not receive its airline licence for some more time, potentially delaying its launch, because the proposed venture of Malaysia's AirAsia Bhd, Telestra, and Tata Sons Ltd has just applied for security clearance for chairman S. Ramadorai.
The airline applied for security clearance for other members on its board in the second half of April. Ramadorai, the former CEO of Tata Consultancy Services Ltd, was appointed chairman of the airline later, on 17 June, but AirAsia India didn't seek security clearance for him immediately.
AirAsia India was originally expected to start flying in September, as reported by Mint on 16 April.
The administrative glitch comes in the wake of a potential legal hurdle. The Bharatiya Janata Party's Subramanian Swamy filed a petition in July in the Supreme Court seeking quashing of clearance granted to AirAsia India on the grounds that it violated the country's foreign investment policy. The case will come up for hearing on Friday.
16/08/13 Tarun Shukla/Mint/Aviation Pros