Mumbai: Under fire on charges of violating India's foreign direct investment (FDI) norms, AirAsia said on Friday that its majority Indian shareholders — Tata Sons and its executives — were in control of the airline. It also blamed ‘vested interests’ for stifling the airline’s growth in the country.
Giving reference to his interaction with Prime Minister Narendra Modi, the airline's group chief executive officer Tony Fernandes said it is time for India to end patronage and put its people first. “The Modi government has promised fairness and transparency and having met the prime minister, I am even more excited about our future in India.”
The airline’s assertions come in the wake of the controversy surrounding its brand-licensing agreement, which allegedly allows AirAsia Malaysia to exercise influence and control on virtually all aspects of operations of AirAsia India. This, it is alleged, violates government norms.
AirAsia India has said the brand licence agreement it had signed in 2013 with its parent in Malaysia upheld the primacy of Indian shareholders and did not violate the rule related to the “effective control” of the airline.
AirAsia India is a joint venture of AirAsia Malaysia (which owns 49 per cent) and Tata Sons and its executives who hold 51 per cent. The airline began operations in June 2014 but has been dogged by intense competition, slow growth, continuous losses, and senior management exits.
To Read the News in Full 15/04/16 Aneesh Phadnis/Business Standard
Giving reference to his interaction with Prime Minister Narendra Modi, the airline's group chief executive officer Tony Fernandes said it is time for India to end patronage and put its people first. “The Modi government has promised fairness and transparency and having met the prime minister, I am even more excited about our future in India.”
The airline’s assertions come in the wake of the controversy surrounding its brand-licensing agreement, which allegedly allows AirAsia Malaysia to exercise influence and control on virtually all aspects of operations of AirAsia India. This, it is alleged, violates government norms.
AirAsia India has said the brand licence agreement it had signed in 2013 with its parent in Malaysia upheld the primacy of Indian shareholders and did not violate the rule related to the “effective control” of the airline.
AirAsia India is a joint venture of AirAsia Malaysia (which owns 49 per cent) and Tata Sons and its executives who hold 51 per cent. The airline began operations in June 2014 but has been dogged by intense competition, slow growth, continuous losses, and senior management exits.
To Read the News in Full 15/04/16 Aneesh Phadnis/Business Standard
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