May 30, 2014 was an action packed day for aviation sector in India. AirAsia India announced its launch, 22 days after getting the flying permit.
Within hours, a three-page petition by Federation of Indian Airlines (FIA) landed at the desk of Civil Aviation Minister Ashok Gajapathi Raju, who was just four days into his assignment. No prizes for guessing. The same day, Delhi High Court issued notice to the Centre seeking its response on a petition by FIA demanding cancellation of approvals given to a joint airline venture of Tata Sons and Singapore Airlines, later christened as ‘Vistara’. The stage was already set for a fierce bout with existing players on one side and the newbies on the other.
Only days before, airlines such as IndiGo and SpiceJet under the banner of FIA had approached Delhi HC seeking cancellation of Air Operators Permit (AOP) granted to AirAsia but could not get any relief as the judges refused to stay the decision.The opposition against the new players did not start one fine morning. It began as soon as AirAsia along with its minor partners Tata Sons and Telestra applied for approvals. Tatas again faced the problem when they announced their second joint venture.
Ironically, the first to raise the red flag was the Civil Aviation Ministry. It felt a clearance by Foreign Investment Promotion Board (FIPB) for AirAsia was against the FDI policy. Later, it changed tracks and gave NOC for the USD 30 million venture. But rival airlines and BJP leader Subramanian Swamy were not to leave it at that. They alleged the FIPB approval was illegal and raised questions about “foreign” control over the airline. The airlines petitioned the Supreme Court against the FIPB approval but were asked to approach the HC.
The ire of the existing players was directed at the September 2012 decision to allow foreign airlines to invest up to 49 per cent, which was greeted with much fanfare. The beleaguered operators felt that it opened door for investments, which would take them out of the financial crisis they were facing. The last thing they wanted was competition. But the government gave the green signal for foreign airlines to invest in new ventures. All hell broke loose. The airlines went to court.
16/11/14 Shemin Joy/Deccan Herald
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Within hours, a three-page petition by Federation of Indian Airlines (FIA) landed at the desk of Civil Aviation Minister Ashok Gajapathi Raju, who was just four days into his assignment. No prizes for guessing. The same day, Delhi High Court issued notice to the Centre seeking its response on a petition by FIA demanding cancellation of approvals given to a joint airline venture of Tata Sons and Singapore Airlines, later christened as ‘Vistara’. The stage was already set for a fierce bout with existing players on one side and the newbies on the other.
Only days before, airlines such as IndiGo and SpiceJet under the banner of FIA had approached Delhi HC seeking cancellation of Air Operators Permit (AOP) granted to AirAsia but could not get any relief as the judges refused to stay the decision.The opposition against the new players did not start one fine morning. It began as soon as AirAsia along with its minor partners Tata Sons and Telestra applied for approvals. Tatas again faced the problem when they announced their second joint venture.
Ironically, the first to raise the red flag was the Civil Aviation Ministry. It felt a clearance by Foreign Investment Promotion Board (FIPB) for AirAsia was against the FDI policy. Later, it changed tracks and gave NOC for the USD 30 million venture. But rival airlines and BJP leader Subramanian Swamy were not to leave it at that. They alleged the FIPB approval was illegal and raised questions about “foreign” control over the airline. The airlines petitioned the Supreme Court against the FIPB approval but were asked to approach the HC.
The ire of the existing players was directed at the September 2012 decision to allow foreign airlines to invest up to 49 per cent, which was greeted with much fanfare. The beleaguered operators felt that it opened door for investments, which would take them out of the financial crisis they were facing. The last thing they wanted was competition. But the government gave the green signal for foreign airlines to invest in new ventures. All hell broke loose. The airlines went to court.
16/11/14 Shemin Joy/Deccan Herald
