Wednesday, April 09, 2014

Takeoff trouble: AirAsia's India entry may delay further

Much-awaited Air Operators Permit (AOP) to AirAsia, which will allow the Malaysian airlines to start its India operations, could get further delayed. High-level sources told CNBC-TV18 that the civil aviation ministry last week wrote to the Election Commission (EC) stating that the final decision on the permit will depend on the outcome of the case at the Delhi High Court. Interestingly, the latest communication that the government has sent to the EC has an unintended consequence because the purpose of writing to EC by civil aviation ministry was to reiterate its stand that it does not require an EC nod for giving AOP to AirAsia. But in the letter, they have also mentioned that the final AOP to AirAsia would depend on the outcome of the Delhi High Court order.
The Delhi High Court is currently hearing this issue over the interpretation of the foreign direct investment (FDI) in civil aviation sector and AirAsia and Tata-Singapore are two cases in front of it and nobody knows when the Delhi High Court will finally dispose off this matter because the next date of hearing is April 23. As of now, it seems the civil aviation ministry is taking a stand which is very different from the stand it had earlier taken. Earlier, it believed, it did not have to wait for Delhi High Court’s verdict as it was expected to be a parallel matter. The aviation ministry has also maintained its stance that giving AOP, as and when it happens, would not violate the model code of conduct.
08/04/14 Ronojoy Banerjee/CNBC-TV18/moneycontrol.com
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