Aviation regulator, DGCA, granted operating permit to AirAsia India though its launching clearance depends on the decision of the Delhi High court
AirAsia India, the $30-million tripartite joint venture between Tata Sons, AirAsia Berhad and Tekestra Tradeplace, has received operating permit from Directorate General of Civil Aviation (DGCA).
Although the operating permit has received, flying permission and its validity will be decided after the Delhi High Court's judgement. AirAsia India is facing a legal challenge from existing domestic airlines as well as Bhartiya Janta Party (BJP) leader Dr Subramanian Swamy, who had approached the Election Commission (EC) to restrain the DGCA from giving a flying permit.
The Delhi High Court is hearing the public litigation filed by Swamy, which claimed the venture is a violation of the FDI Guidelines for the civil aviation sector. The case will be heard by the special bench on 11th July.
Speaking on the launch date, AirAsia Chief Executive Officer Mittu Chandliya, in a statement said "We would realistically start operations in anywhere between one to three months given the fact that a new government will be in place soon."
AirAsia India is expected to launch services from it's Chennai base with three Airbus 320 aircrafts, and will mainly to connect the Tier-II cities in India. They will also look to make the airfares 35% lower than the average airfares in the market currently as the officials promise to make it one of the cheapest airlines in India. The startup carrier has completed the final inspections, including test flights of its Airbus 320, monitored by the DGCA.
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