New Delhi: The Tata Sons-Singapore Airlines' proposed full service carrier (FSC) is unlikely to face any regulatory challenges but will face the same roadblock that the Tata-AirAsia JV is facing. The ongoing debate that the recent foreign direct investment (FDI) changes allow foreign airlines to invest in existing desi carriers or even go in for start-ups is going to haunt the latest proposal too.
The Delhi High Court on Wednesday admitted a petition filed by NJP leader Subramanian Swamy against the clearance given to Tata's JV low cost airline with AirAsia and asked the Centre to clarify this policy within four weeks. Swamy says the newly-relaxed FDI policy allows investment in existing carriers alone and not start-ups like AirAsia India. The government had recently allowed foreign airlines to hold up to 49% stake in Indian carriers.
"The ruling on this case will decide the fate of the proposed new Tata-Singapore Airlines JV. Otherwise there are no regulatory issues. We have some instances of common promoters having interest in airlines being run under different air operators' permit (AOP or licence)," said an official.For instance, Naresh Goyal has controlling stake in both Jet Airways and JetKonnect, both of which have a separate AOP.
Read News In Full 20/09/13 Saurabh Sinha/Times of India
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