AirAsia gets approval for India investment
DELHI — AirAsia has won approval in India to form a joint venture, the country’s first foreign investment proposal after airline ownership rules were eased.
DELHI — AirAsia has won approval in India to form a joint venture, the country’s first foreign investment proposal after airline ownership rules were eased.
The airline venture, which includes the Tata group, was approved by the Foreign Investment Promotion Board and will now need to get a licence from the Directorate General of Civil Aviation.
AirAsia, which will own 49 per cent of the venture, will initially invest about 800 million rupees (S$18 million) in the airline operator.
The new airline will operate from Chennai in southern India and will provide services to smaller cities in the country, AirAsia said previously.
The approval comes as carriers in Asia’s third-largest economy seek global equity alliances to raise funds needed to pay for expansion.
Jet Airways and Etihad Airways are holding talks about an investment deal in India’s biggest carrier by market value. BLOOMBERG
Stay in the know. Anytime. Anywhere.
Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.
By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.
