New Delhi/Kuala Lumpur: Malaysian budget carrier AirAsia on Wednesday received regulatory approvals from the Foreign Investment Promotion Board (FIPB) for starting a new airline venture in the Indian civil aviation sector with partners like the Tata Group and Arun Bhatia promoted Telstra Tradeplace.
"The good always win. People and companies with good intentions to create jobs and make life of the average man better will always win," an elated Tony Fernandes, Air Asia's Indian origin founder and chief executive, tweeted.
"Thank you all. AirAsia - Tata India airline proposal gets government nod."
In its proposal sent to the FIPB last month, the company had said that it intends to hold 49 per cent stake in the venture, which will include industrial conglomerate Tata Group and Telstra Tradeplace.
The Malaysian budget carrier intends to invest anywhere between $30 million to $60 million in the airline venture.
No major hurdles for AirAsia's planned JV: Ajit Singh
AirAsia's planned joint venture in India does not see any major hurdle except for few procedural problems, civil aviation minister Ajit Singh said on Wednesday.
"I don't see any big hurdles, whether they (AirAsia with Tata and Arun Bhatia) form joint venture before or after. The aviation ministry will check procedures of taking no objection certificate, having two-third of India directors and others were followed," he said.
However, he said AirAsia's planned joint venture could face some procedural problems which have to be cleared by Foreign Investment Promotion Board.
AirAsia, Tata Sons and Arun Bhatia of Telstra Trade Place Pvt. Ltd have proposed to set up a low-cost carrier in India.