India’s private airlines want AirAsia kept out

by **hlk** Fri 21 Feb 2014, 14:10

NEW DELHI: AirAsia India seems to continuously face "roadblocks" in taking to the skies, with the latest being calls from India's private airlines for the authorities to block the entry of the frills-free budget carrier.

India's airlines, namely, Jet Airways, GoAir, Indigo and SpiceJet, are said to be against AirAsia's entry.

They are said to have opposed issuance of flying licence for AirAsia India, Indian media reported quoting unnamed source from the Director-General of Civil Aviation (DGCA).

AirAsia India, a 49%:30%:21%joint venture between AirAsia, Tata Sons and Arun Bhatia of Telestra Tradeplace, was launched in February last year and was subsequently approved by the Foreign Investment Promotion Board (FIPB) and the Civil Aviation Ministry.

It has also received the No Objection Certification from the Civil Aviation Ministry.

"We are the first foreign airline that has ever been allowed to have gone this far in India. There are many that want us. There are a few that do not want us," AirAsia Bhd Group chief executive Officer, Tan Sri Tony Fernandes, had said recently.

The DGCA has also approved all of AirAsia India's training facilities.

AirAsia India, the first airline to be launched since the Indian government in September 2012 allowed a 49% foreign direct investment in the civil aviation sector by foreign carriers, had ambitious plans to take to the skies within six months after its launch.

However, reports suggest that it can only take off perhaps in September this year.

Earlier this year, the Indian government asked the public to raise fresh objections, if there are any, for allowing the airline to start commercial operations in the country of 1.3 billion population, of which only about 1% flies.

This is despite the fact that AirAsia India had already gone through a similar process last year. A political party leader, Subramanian Swamy, also went to court last year, objecting to the clearance given to AirAsia India to launch an airline.
It seems like the Indian aviation industry, which is in about US$12.6bil of debt and US$8.6bil of cumulative losses are afraid of new competitions that could push them further into the red – Bernama.