New Delhi: Tata-Singapore Airline JV is likely to put AirAsia India’s clearance from civil aviation in turbulence. The matter is already before Delhi Court who has asked government to reply to the charges filed by Subramanian Swamy.
Tata who gave India the first commercial airline service is back with a 51% stake in Singapore Airlines (SIA) to operate services within India. The JV will be based in the capital city.
Eighteen years ago, Tata Sons and Singapore Airlines (SIA) had planned a similar venture but with resistance from domestic carriers to foreign airlines entering Indian routes, the Government did not clear it. Tata has a 30% stake in Malaysia-based AirAsia’s Indian venture. Telstra of Bhatia has 21 %.
In AirAsia India, the Tata has only 30% stake leaving the control to AirAsia. This is a violation of FDI rules which says that only Indian investors should have executive control.
In SIA, the Indian company has a clear majority and before the FIPB, it has said that $100 million would be invested while for AirAsia, it is only $30 million.
Tata-SIA will have Prasad Menon of Tata Industries as Chairman and Mukund Rajan of Tata Sons on the board along with SIA VP(commercial) Mak Swee Wah.
Read News In Full 20/09/13 Ayyappa Prasad/Truth Dive
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