AirAsia to tie up with Tatas to start new airline in India

Malaysia’s leading no frills carrier AirAsia has sought the approval of the Indian Government to join hands with the Tata Group to enter the aviation sector in the country that may give the Tata Group to make a comeback in the airline business after their earlier aborted effort in association with Singapore Airlines.

This would be the first investment in the aviation sector by any foreign airline after the Government last year hiked the foreign direct investment (FDI) limit from 26 per cent to 49 per cent.

In a statement issued here on Wednesday, AirAsia said it had applied to Foreign Investment Promotion Board (FIPB) to take 49 per cent in a venture with Tata Sons Ltd and Arun Bhatia’s Telestra Tradeplace Pvt Ltd.