AirAsia Bhd. the region’s biggest budget airline, is aiming to start flights in India and bring more competition to one of the world’s fastest growing markets. The only thing standing in the way: a law dating back to the 1930s.
India’s aviation regulator invoked a a provision under its Aircraft Rules 1937, for the first time, asking for public feedback on an application by an airline to start services in the country. That delayed plans for AirAsia, which had aimed to start operations by the end of December and offer free tickets for some seats.
“This is unfortunate, unwarranted and sets a dangerous precedent,” said Amber Dubey, a Gurgaon, India-based partner at consultancy KPMG. “Granting of airline licenses cannot be done through opinion polls.”
The regulator invoking a rule after the aviation ministry gave an initial go-ahead shows the difficulties companies face in India, ranked 134th out of 189 countries by the World Bank in June for ease of doing business.
28/01/14 Anurag Kotoky/Bloomberg
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India’s aviation regulator invoked a a provision under its Aircraft Rules 1937, for the first time, asking for public feedback on an application by an airline to start services in the country. That delayed plans for AirAsia, which had aimed to start operations by the end of December and offer free tickets for some seats.
“This is unfortunate, unwarranted and sets a dangerous precedent,” said Amber Dubey, a Gurgaon, India-based partner at consultancy KPMG. “Granting of airline licenses cannot be done through opinion polls.”
The regulator invoking a rule after the aviation ministry gave an initial go-ahead shows the difficulties companies face in India, ranked 134th out of 189 countries by the World Bank in June for ease of doing business.
28/01/14 Anurag Kotoky/Bloomberg
