Tuesday, April 15, 2014

New DGCA ownership rule may hit Jet-Etihad, AirAsia plans

New Delhi: In a move that could make it more difficult for foreign entities to take over the management of a domestic airline in India, the Directorate-General of Civil Aviation (DGCA) has stipulated that an Indian carrier cannot enter into an agreement that gives the foreign airline, foreign investing institution or others on their behalf the right to control the management of the domestic operator.
Analysts feel that the revision to the Civil Aviation Requirement (CAR) could affect the fortunes of Etihad's buy-out of Jet Airways as also the two new start-up airlines, AirAsia India and Tata-Singapore Airlines.
All three are at various stages of getting permission from the Government.
The CAR, laid down by the DGCA, stipulates the rules that an airline has to follow to be allowed to operate in the country.
Aviation industry watchers feel that the worst affected is likely to be AirAsia India, the three-way joint venture between AirAsia, Tata Sons and the Bhatias.
14/04/14 Business Line
To Read the News in full at Source, Click the Headline