Tata-Air Asia agreement violates DGCA rules, FDI policy: FIA
Federation of Indian Airlines (FIA) on Thursday moved the Supreme Court against aviation permit to TATA-Air Asia stating that fraud has been committed.
Zee Media Bureau
New Delhi: Federation of Indian Airlines (FIA) on Thursday moved the Supreme Court against aviation permit to TATA-Air Asia stating that fraud has been committed.
FIA said TATA-Air Asia agreement violates DGCA rules and FDI policy. Adding that the matter is pending in Delhi HC since April 2014, FIA has sought SC directive.
FIA in its plea has said that AirAsia while applying for the licence had allegedly not disclosed its brand equity agreement according to which the effective control of the airline would remain with the foreign party.
For grant of flying licence the rules stipulated that effective control should be with the Indian player, FIA has said in his plea.
Malaysia's largest budget carrier, AirAsia, had set up the joint venture with the Tata Group and Telestra Tradeplace to launch the regional airline in India.
With Agency Inputs