In the application submitted to the Indian Foreign Investment Promotion Board this week, AirAsia requested to invest 49 per cent in the new carrier, in a joint venture with Tata Sons Ltd and Telestra Tradeplace.
According to the low-cost group, Indian AirAsia will operate from Chennai in Tamil Nadu and focus on providing domestic Tier II/Tier III city connectivity.
AirAsia founder Tony Fernandes said the group had monitored the aviation sector in India over the past few years and now “strongly believes” that the current environment is “perfect” to introduce AirAsia and its low-fare, no frills model.
The move comes after the decision by the Government of India in September last year to open up the aviation sector to direct investment from foreign carriers.
– e-Travel Blackboard