Analysts said they were surprised by the DGCA move as the time to seek public comments was over. “The public notice should have been before the NOC stage and not at this juncture,” said Kapil Kaul, chief executive officer of the Centre for Asia Pacific Aviation, an aviation think-tank.
This is despite the venture having been cleared by the Foreign Investment Promotion Board (FIPB) and receiving the Civil Aviation Ministry’s no-objection certificate (NOC).
The notice comes after AirAsia went through a two-month objection period last year, during which, the public and interested parties had time to file objections, if any.
AirAsia India is a 49:30:21 joint venture between AirAsia, Asia’s largest budget airline, Tata Sons and Telestra Tradeplace.
The venture was announced last February and was subsequently approved by the FIPB and the Civil Aviation Ministry.
But the latest DGCA notice offers a 30-day window to “the public and all the persons likely to be affected by the grant of this permit to submit their objections or suggestions, if any”. The notice effectively shifts the timeline set by the airline to start flying by the end of February, said the report.
A top Civil Aviation Ministry official claimed the notice was unavoidable “as the government is under a lot of scrutiny from all quarters”, and was issued under existing rules.
A political party leader Subramanian Swamy went to court last year objecting to the clearance given to AirAsia India to launch an airline. The case, pending in the Delhi High Court, argued that foreign investment rules for the sector did not allow a new airline to fly in the domestic skies.
This is not the first time a Malaysian company facing difficulties to operate India. In 2011, a case has been file on Ananda Krishnan together with a former Indian telecom minister and his brother by investigator of India on charges of criminal conspiracy over a controversial deal involving telecommunication giant Maxis and India’s Aircel and the case is still pending. This does not help even both founder of Air Asia Tony Fernandes and Ananda Krishnan are Malaysian Indian.
Analysts said they were surprised by the DGCA move as the time to seek public comments was over.
“The public notice should have been before the NOC stage and not at this juncture,” said Kapil Kaul, chief executive officer of the Centre for Asia Pacific Aviation, an aviation think-tank.
AirAsia is Asia leading budget Airline in Asia model after Virgin Atlantic. It is a public listed company with largest percentage of foreign investor in Malaysia Thailand brokerages indicated that it is the only Malaysian counter get most inquiry by investor after Thailand admitted to Asia Trading Link.
AirAsia and Tony Fernandes earn numerous award. AirAsia and it affialite AirAsia X bill order of air craft, usually Airbus was large. French government has conferred Tony Fernandes, Group CEO of AirAsia with the Commander of the Legion d’Honneur award in Novemeber 2013, signifying Fernandes’s outstanding contributions towards the economy of France through the aviation industry.
Tan Sri Tony Fernandes also host reality TV show The Apprentice Asia.
Tan Sri Tony Fernandes, has been honoured with the Innovator of the Year award at the CNBC 12th Asia Business Leaders Awards (ABLA) in Bangkok, in Nov 2013.
AirAsia Berhad was named the "Best Managed Company in Asia for the Airlines and Aviation sector" by international magazine Euromoney few days ago.
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