Active Stocks
Tue Mar 19 2024 10:51:07
  1. Tata Consultancy Services share price
  2. 4,016.15 -3.10%
  1. Tata Steel share price
  2. 148.35 -0.84%
  1. NTPC share price
  2. 312.20 -1.56%
  1. HDFC Bank share price
  2. 1,443.00 -0.22%
  1. ITC share price
  2. 413.75 -0.87%
Business News/ Companies / News/  Ownership and control of AirAsia India lies with India nationals: DGCA to Delhi HC
BackBack

Ownership and control of AirAsia India lies with India nationals: DGCA to Delhi HC

DGCA made the submission after the Delhi high court directed it to conduct an inquiry into the issue of AirAsia India granting operational control to a foreign company

The brand licensing agreement was signed between AirAsia India and the foreign airline partner AirAsia Bhd, Malaysia’s largest low-cost airline, in April 2013. Photo: MintPremium
The brand licensing agreement was signed between AirAsia India and the foreign airline partner AirAsia Bhd, Malaysia’s largest low-cost airline, in April 2013. Photo: Mint

New Delhi: The Director General of Civil Aviation (DGCA) on Friday told the Delhi high court that the ownership and control of AirAsia India vests with Indian nationals.

DGCA made the submission after the court directed it in November to conduct an inquiry into the issue of AirAsia India granting operational control to a foreign company—a charge which has been denied by AirAsia.

For this purpose, the court had asked AirAsia India to submit the brand licensing agreement (BLA) operating between AirAsia India and AirAsia Bhd to DGCA.

“Based on review of the BLA along with provisions of Aircraft Rules,1937 and definition of control under FDI rules, I do not find that the terms and conditions laid down in the BLA dilute the substantial ownership and effective control of AirAsia India being vested with India nationals," said the report by the DGCA which Mint has reviewed.

The BLA was signed between AirAsia India and the foreign airline partner AirAsia Bhd, Malaysia’s largest low-cost airline, in April 2013.

The Federation of Indian Airlines (FIA), which represents IndiGo, Jet Airways, GoAir and SpiceJet, along with BJP leader Subramanian Swamy, had brought a case challenging the licence granted to AirAsia India, claiming it was fraudulently obtained. They had sought immediate suspension of the licence.

It was alleged that according to the BLA, day-to-day operations of the airline were controlled from Malaysia, violating the substantial ownership and effective control norms.

Tarun Shukla contributed to the story.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 23 Feb 2017, 09:37 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie