Why will there be delay in AirAsia India launch?

Moneycontrol Bureau

Even as passengers are looking forward to the launch of AirAsia’s India operations pre--Diwali, expect the airline to start flights only by December-end.

Mittu Chandilya, the airline’s CEO clarified to media in Chennai that the airline is awaiting necessary approvals and the launch may be pushed to year-end. It is prudent to wait then hurry up the launch, he said.

Read This: AirAsia: The Tony & Mittu show

Here are factors that are pushing the launch at a later date

The airline is yet to get a security clearance. The Supreme Court has recently asked former MP Subramanian Swamy to move the Delhi High Court with his plea challenging clearance given to proposed low-cost airline AirAsia India.

In his PIL, Swamy has challenged the clearance granted to the proposed airline on the grounds that the, foreign investment is only permitted for an existing airline but AirAsia India is a new airline and not an existing carrier.

The aviation ministry is yet to give a no-objection certificate to the venture.

Post securing NOC, airline licence is a must.

There are concerns pertaining to the effective control that should be obviously with Indian hands.In this venture, AirAsia will hold 49 per cent stake, Tata Group 30 percent, while the remaining 21 percent will be with Arun Bhatia's Telstra Tradeplace. There is one foreigner-Tony Fernandes and one NRI (Bhatia) and this has not gone well with politicians.