AirAsia India in trouble; rivals seek probe for alleged violence of FDI norms
28 Oct 2016 08:27:31
ibtimes.co.in
AirAsia India's aviation permit to conduct operations may be cancelled as the Federation of Indian Airlines (FIA) on Thursday filed a case in the Supreme Court stating that Tata-AirAsia committed a fraud.
In its case, FIA said that the Tata-AirAsia agreement violated the Directorate General of Civil Aviation (DGCA) rules and Foreign Direct Investment (FDI) policy. Although the case is pending in the Delhi high court since April 2014, the FIA is seeking the Supreme Court's directive on the matter, Zee News reported.
In its plea, the federation of airlines, which constitutes airlines such as Jet Airways, IndiGo, GoAir and SpiceJet has said that AirAsia (when applying for license) did not disclose its brand equity agreement on the basis of which the control of the airline would remain with the foreign party (AirAsia India is a tie-up with AirAsia and Tata Group).
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