The foreign investment promotion board (FIPB) has given its approval for Malaysian budget airline AirAsia's proposal to start a passenger airline in collaboration with the Tata Group.
However, the proposed airline still needs approvals from the aviation ministry and the Directorate General of Civil Aviation.
The proposal by AirAsia Investment Ltd to set up a joint venture company for the business of operating a scheduled passenger airline, and Farnair's proposal to increase FDI in an air transport business company, were among the six proposals approved by FIPB on March 6, the finance ministry said.
Asked whether AirAsia and Tatas had approached the aviation ministry, civial aviation minister Ajit Singh said: "No, they have not submitted any application as yet."
He said there were "some concerns... some procedural issues" with regard to the proposed airline. "We will look into it quickly. But all that will depend on how fast they provide us the information," Singh said.