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Thursday, 3 July 2014

'Tata Sons not desi enough to fly JV'

New Delhi: There may have been numerous attempts by vested interests to prevent Tata Sons from launching JV airlines with both AirAsia and Singapore Airlines (SIA), but this one sure takes the cake. Now permission to the JV with SIA is being sought to be denied on the grounds that Tata Sons is not desi enough to qualify as the Indian partner with 51% stake, as required by the FDI rules for startup airlines being formed along with foreign carriers!

Also, the directorate general of civil aviation (DGCA) — which had recently sought objections or comments from public over the proposed Tata-SIA JV — has been asked to deny permission as Tata Sons chief Cyrus Mistry is not an Indian national.


"We received these objections from an individual opposing Tata-SIA. His plea is that since Tata Sons has some foreign holding, the Tata-SIA JV will breach the FDI rule which stipulates that a minimum of 51% stake of such a startup airline must be with Indians and the rest with the foreign airlines. The other issue raised is of the Tata chief's nationality. We have written to the Tatas, seeking clarifications on these issues before taking a decision on the proposed airline," said a senior official.
Read news in full 02/06/14 Saurabh Sinha/Times of India
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