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Saturday, 27 February 2016

Older carriers allege Vistara and AirAsia India flouting norms, hit out against abolishing 5/20 rule

New Delhi: Two days after Ratan Tata's complaint that older carriers were lobbying for protection against newer airlines, his rivals launched a strong joint counterattack, accusing the Tata Group of not conforming to guidelines.

AirAsia India and Vistara, in which Tata Group has stakes, were set up in the past two years. The older carriers say overseas stakeholders, AirAsia Bhd and Singapore Airlines, respectively, are managing the two airlines, in contravention of the rules, which stipulate that control has to be local in nature.


IndiGo founder Rahul Bhatia said: "They are subverting the law of the land."

SpiceJet Chairman Ajay Singh said the group "is wilfully allowing them (overseas stakeholders) to break Indian law".

In response to an ET query, a Tata Sons spokesperson said, "Our stand on these issues is crystal clear, and our airlines are fully compliant with all legal requirements."
To Read the News in Full 23/02/16 Economic Times
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