New Delhi: BJP leader Subramanian Swamy has opposed the grant of schedule airline licence to the proposed joint venture low cost carrier (LCC) of Malaysia's AirAsia and Tata Sons. Swamy has claimed that this JV does not meet the basic criteria of having "effective control" with Indians — a must for allowing FDI by foreign airlines into desi ones — and asked for their licence application to be rejected.
Malaysian LCC AirAsia has 49% stake in the JV airline, AirAsia India Pvt Ltd (AAIPL), with Tata Sons and Telestra Tradeplace having the balance 30% and 21%, respectively. "Indian shareholding in AAIPL is held by Tatas and Telestra in 30:21 ration which requires both voting together on all important matters since AirAsia is the single largest shareholder with 49%. Numerous management difficulties would come up in absence of there being a single majority Indian shareholder with respect to effective control," Swamy has written in a 18-page letter to directorate general of civil aviation (DGCA) chief Prabhat Kumar on Saturday.
09/02/14 Times of India
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Malaysian LCC AirAsia has 49% stake in the JV airline, AirAsia India Pvt Ltd (AAIPL), with Tata Sons and Telestra Tradeplace having the balance 30% and 21%, respectively. "Indian shareholding in AAIPL is held by Tatas and Telestra in 30:21 ration which requires both voting together on all important matters since AirAsia is the single largest shareholder with 49%. Numerous management difficulties would come up in absence of there being a single majority Indian shareholder with respect to effective control," Swamy has written in a 18-page letter to directorate general of civil aviation (DGCA) chief Prabhat Kumar on Saturday.
09/02/14 Times of India
