A day before the Foreign Investment Promotion Board (FIPB) meeting to look into AirAsia’s proposed joint venture to launch a new airline here, the Aviation Ministry is understood to have opposed the plan, saying the new FDI rules are meant for existing carriers only.
The FIPB is slated to take up Air Asia’s JV proposal with the Tatas and Arun Bhatia on Wednesday. The Ministry is understood to have expressed its reservations in a note to FIPB, stating that the new company should have been formed before seeking the government’s nod.
In a related development, AirAsia Group Chief Executive Tony Fernandes, on Tuesday, said he had selected the CEO for his proposed airline venture with the Tatas.
“I have selected the CEO for AirAsia India. A very smart boy from the South, Madras (Chennai). An amazing CV. Will impress all.,” Mr. Fernandes tweeted on Tuesday, without identifying the CEO. The announcement comes ahead ofreports that Mr. Fernandes is keen to start operations as early as May-June.