Kuala Lumpur: Malaysia's AirAsia, Asia's biggest budget carrier, will invest between $30 to $60 million into its new airline venture, said chief executive Tony Fernandes on Wednesday.
According to CEO Tony Fernandes, the new airline is likely to start operations in the fourth quarter of this year. Also read: AirAsia ropes in Tatas to launch new airline
The company has sought approval to establish a new airline with unlisted firms Tata Sons Ltd and Telstra Tradeplace Pvt Ltd.
AirAsia, through its investment arm, AirAsia Investment Ltd, intends to own 49 per cent of the venture with the remaining stake held by the two Tata firms. The venture plans to operate from Chennai in southern India and provide domestic flight options.
Indian aviation industry, which has seen continued losses due to high operating costs and regulatory uncertainty, was opened to foreign investors in September last year.
AirAsia presently flies to four south Indian cities and the eastern city of Kolkata in addition to 20 countries across Asia.
- with PTI inputs
Also read: AirAsia ropes in Tatas to launch new airline