AirAsia probe may hurt Vistara's plan to fly internationally: Report

The Central Board of Investigation (CBI)-led probe into AirAsia India's money laundering case may put Vistara's plan to start international flights on the back burner, Mint reported.

The common denominator between the two airlines is Tata Sons. The conglomerate owns a 49 percent stake in Air Asia India, and runs Vistara in a joint venture with Singapore Airlines.

AirAsia India is being investigated by the investigative agency for allegedly lobbying the government to get licences to fly internationally by manipulating policies and violating foreign investment norms.

Meanwhile, Vistara in June this year applied for rights to start international flights, after it got its 20th aircraft delivered.

The airline had detailed a plan to fly to destinations like Sri Lanka, Maldives, Thailand and other neighbouring countries, the news daily reported. It was hoping to fly out from October.

As the probe continues, the CBI may force the government to withhold the permission sought by Vistara to fly internationally, people familiar with the matter told the paper.

"With the general elections coming up next year, bureaucrats may be wary of granting Vistara overseas flight permits in the backdrop of CBI investigating another airline," a source was quoted as saying.