AirAsia receives formal approval from India’s Foreign Investment Promotion Board
Kuala Lumpur, 5 April 2013
The application made by AirAsia Berhad (“AirAsia”) through its investment arm, AirAsia Investment Ltd. (“AAIL”) to the Foreign Investment Promotion Board (“FIPB”) of India seeking approval for a 49% investment into an Indian joint venture company named ‘AirAsia (India) Pvt Ltd” partnering Tata Sons Limited and Mr. Arun Bathia of Telestra Tradeplace Pvt. Ltd. has been granted a formal approval on Thursday, 4 April 2013. This approval will enable AirAsia (India) Pvt. Ltd. to apply with the Indian Directorate General of Civil Aviation for the aviation licence to operate as an Indian airline.
AirAsia is confident that it can replicate its unprecedented success across Malaysia, Thailand, Indonesia and other joint ventures. In particular, AirAsia believes its success in affording people to fly through superior operational performance by emphasizing a focused and disciplined cost structure will tremendously benefit the Indian consumer.
As a pioneer of the low cost carrier model in Asia and currently Asia’s largest LCC with 120 aircraft and over 350 orders, AirAsia believes Indian aviation has enormous long-term growth potential. The joint venture plans to operate from Chennai, Tamil Nadu focused on providing domestic Tier II and Tier III city connectivity to Indian travelers.
Currently, AirAsia through its operations based in Thailand and Malaysia already connect Chennai, Bangalore, Thiruchirapalli, Kochi and Kolkata to Asean and beyond through its Group’s operations.