Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Tony Fernandes says ‘if’ on sale, ready to buy Tatas’ AirAsia India stake
BackBack

Tony Fernandes says ‘if’ on sale, ready to buy Tatas’ AirAsia India stake

The comments assume significance against the backdrop of Fernandes recently receiving overseas citizen of India status, which could provide more leeway for him

A file photo of AirAsia Group’s chief executive officer Tony Fernandes. Photo: MintPremium
A file photo of AirAsia Group’s chief executive officer Tony Fernandes. Photo: Mint

Farnborough: AirAsia chief Tony Fernandes has expressed willingness to buy stake from the Tatas in AirAsia India, provided it is on sale even as he emphasized that the airline joint venture is working well.

The comments assume significance against the backdrop of Fernandes recently receiving overseas citizen of India (OCI) status, which could provide more leeway for him than as a foreign investor.

Responding to a query on whether he would look at acquiring stake from the Tatas, the AirAsia Group’s chief executive officer indicated that he is willing to look at it. “We are happy with the Tatas at the moment. It (the joint venture) is working well but if any one wants to sell and it is good price and if I can buy I will buy," he told PTI in an interview on the sidelines of the Farnborough international air show.

“I (have) got my OCI (status). So why not? SOEC (substantial ownership and effective control) is a non-issue now," Fernandes said.

Under the new civil aviation policy, foreign entities—excluding airlines—can own up to 100% in Indian airlines. AirAsia Berhad has 49% stake in AirAsia India, which commenced operations in 2014.

At present, the start-up airline has a fleet of six planes.

Earlier this year, Tata Sons hiked its stake in AirAsia India to 49% following the exit of Arun Bhatia’s Telestra Tradeplace, which sold its entire nearly 10% shareholding.

While Tata Sons bought 7.94% shareholding, the remaining stake would be purchased by the carrier’s two directors—S. Ramadorai and R. Venkataramanan—in their individual capacity.

“We are excited about India. It is a tough market... We are looking to accelerate (in India)," Fernandes had told reporters on Tuesday.

Besides, the controversial 5/20 norm, whereby only airlines having at least five years operational experience and a fleet of 20 aircraft can fly overseas, was scrapped in the new civil aviation policy.

“I am not certainly going to tell the Indian press when AirAsia India is going to launch international operations. because all my competitors are reading. It is not necessary that airlines take time to ramp up the fleet," Fernandes said in the interview. PTI

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: 14 Jul 2016, 08:31 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie