While AirAsia will hold a 49% stake in the proposed airline, the Tata Group will hold 30% and Arun Bhatia 21%.
AirAsia India will now need to apply for an operator’s permit with the Directorate General of Civil Aviation (DGCA). DGCA chief Arun Mishra had told HT last week that the process of granting the permit could be completed in a month’s time “depending on the documentation”.
AirAsia India’s entry into the domestic aviation market will bring cheer to passengers. Tony Fernandes, Group CEO of AirAsia Group, has promised “nano fares” and has said the revenue management of Indian carriers was “very poor” and air fares were “just too high”.