AirAsia India Unlikely To Start Flying Before Summer
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AirAsia India Unlikely To Start Flying Before Summer
AirAsia India, which was initially optimistic about starting operations by October this year and then January 2014, may now need to wait until summer 2014 before it can start flying, according to media reports.
AirAsia India is a 49:30:21 joint venture between AirAsia Bhd, Tata Sons and Telestra Tradeplace. Tata Sons later entered into another joint venture with Singapore Airlines -- Tata-SIA -- to create a full-fledged airline in India.
In Tata-SIA, Tata Sons is the majority shareholder with a 51 per cent stake. The Foreign Investment Promotion Board (FIPB) has cleared both airline ventures.
FirstPost.com reported that Tata-SIA has applied to the Ministry of Civil Aviation for a no-objection certificate (NoC), giving mandatory details such as number of directors on its board and seeking security clearance for them from the Ministry of Home Affairs.
However, AirAsia India has still not been granted the operating permit and is therefore unlikely to take to the skies before the summer schedule of 2014, reported the online business daily.
AirAsia India had already secured the NoC earlier.
The report quoted an unnamed senior official in the ministry confirming both these developments to the daily, saying the NoC application from Tata-SIA has been received over the last few days.
According to the report, there has been much speculation about the apparently fast-track treatment that the Tata-SIA venture has received from various government departments against the rather slow pace of clearances being accorded to AirAsia India.
The NoC for Tata-SIA may also arrive fairly quickly. Thereafter, it will approach aviation regulator DGCA for a flying permit. For AirAsia India though, delays abound.
Now, another hitch could be the voluntary retirement that current Director General of Civil Aviation has taken -- his last day in office is Dec 31. And until now, there has been no decision on a successor, said Firstpost.com.
So it is possible that AirAsia's launch plans get further delayed since its operating permit still needs to be issued by the DGCA. The official quoted earlier said there is a long-drawn procedure for issuing a Scheduled Operators' Permit (SOP), the report said.
The two ventures are expected to address widely different segments of the domestic aviation business -- AirAsia India would be an ultra low-cost carrier, based out of Chennai, whereas Tata-SIA would be a full service carrier, based in New Delhi.
The report also said that there has been persistent speculation over the Tatas pulling out of AirAsia India since the two business models are widely divergent and may not offer synergies.
This speculation has been denied by the Tatas and Civil Aviation Minister Ajit Singh had earlier clarified that no aviation rule has been violated by the Tatas in having a stake in two separate airline ventures.
The ministry official quoted earlier said in case the Tatas were to pull out, the entire process would have to be cancelled.
"The FIPB approval was given based on the shareholding structure submitted at that time. If there is going to be a change in shareholding, a fresh FIPB approval will of course be needed," he said.
-- BERNAMA
AirAsia India is a 49:30:21 joint venture between AirAsia Bhd, Tata Sons and Telestra Tradeplace. Tata Sons later entered into another joint venture with Singapore Airlines -- Tata-SIA -- to create a full-fledged airline in India.
In Tata-SIA, Tata Sons is the majority shareholder with a 51 per cent stake. The Foreign Investment Promotion Board (FIPB) has cleared both airline ventures.
FirstPost.com reported that Tata-SIA has applied to the Ministry of Civil Aviation for a no-objection certificate (NoC), giving mandatory details such as number of directors on its board and seeking security clearance for them from the Ministry of Home Affairs.
However, AirAsia India has still not been granted the operating permit and is therefore unlikely to take to the skies before the summer schedule of 2014, reported the online business daily.
AirAsia India had already secured the NoC earlier.
The report quoted an unnamed senior official in the ministry confirming both these developments to the daily, saying the NoC application from Tata-SIA has been received over the last few days.
According to the report, there has been much speculation about the apparently fast-track treatment that the Tata-SIA venture has received from various government departments against the rather slow pace of clearances being accorded to AirAsia India.
The NoC for Tata-SIA may also arrive fairly quickly. Thereafter, it will approach aviation regulator DGCA for a flying permit. For AirAsia India though, delays abound.
Now, another hitch could be the voluntary retirement that current Director General of Civil Aviation has taken -- his last day in office is Dec 31. And until now, there has been no decision on a successor, said Firstpost.com.
So it is possible that AirAsia's launch plans get further delayed since its operating permit still needs to be issued by the DGCA. The official quoted earlier said there is a long-drawn procedure for issuing a Scheduled Operators' Permit (SOP), the report said.
The two ventures are expected to address widely different segments of the domestic aviation business -- AirAsia India would be an ultra low-cost carrier, based out of Chennai, whereas Tata-SIA would be a full service carrier, based in New Delhi.
The report also said that there has been persistent speculation over the Tatas pulling out of AirAsia India since the two business models are widely divergent and may not offer synergies.
This speculation has been denied by the Tatas and Civil Aviation Minister Ajit Singh had earlier clarified that no aviation rule has been violated by the Tatas in having a stake in two separate airline ventures.
The ministry official quoted earlier said in case the Tatas were to pull out, the entire process would have to be cancelled.
"The FIPB approval was given based on the shareholding structure submitted at that time. If there is going to be a change in shareholding, a fresh FIPB approval will of course be needed," he said.
-- BERNAMA
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Ever flown in India? Ever deal with the bureaucracy, which was introduced by the British, but perfected by the Indians? No enlightenment required... merely suppositions.
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DANA POINT, Steve Irons: It should not be too surprising that the Obama care
website is encountering problems. Recent history has shown that government bureaucrats are inept when tackling technology.
One example includes Great Britain's National Health Service attempt to create the world's largest civilian computer system linking all parts of the NHS only to abandon the project after spending 11.4 billion pounds ($18.3 billion). The project was beset by changing specifications, technical challenges and clashes with suppliers that left the project years behind schedule and way over cost. Sound familiar?
Closer to home, last year, after spending $135 million and seven years, the California Department of Motor Vehicles dumped its effort to overhaul the state's 40-year-old computer system that processes driver's licenses and vehicle registrations.
In 2012, after doling out $500 million, the California Court system pulled the plug on the effort to electronically connect every courthouse in the state when the costs ballooned to $2 billion.
Finally, the project to upgrade California's payroll system was canceled because it was years behind schedule, the cost was triple the original $400 million estimate and it didn't work.
No I don't think we have perfected it.On the contrary I think guys like you need a serious reality check.You are living in a fools paradise.Another pathetic attempt to label India
website is encountering problems. Recent history has shown that government bureaucrats are inept when tackling technology.
One example includes Great Britain's National Health Service attempt to create the world's largest civilian computer system linking all parts of the NHS only to abandon the project after spending 11.4 billion pounds ($18.3 billion). The project was beset by changing specifications, technical challenges and clashes with suppliers that left the project years behind schedule and way over cost. Sound familiar?
Closer to home, last year, after spending $135 million and seven years, the California Department of Motor Vehicles dumped its effort to overhaul the state's 40-year-old computer system that processes driver's licenses and vehicle registrations.
In 2012, after doling out $500 million, the California Court system pulled the plug on the effort to electronically connect every courthouse in the state when the costs ballooned to $2 billion.
Finally, the project to upgrade California's payroll system was canceled because it was years behind schedule, the cost was triple the original $400 million estimate and it didn't work.
No I don't think we have perfected it.On the contrary I think guys like you need a serious reality check.You are living in a fools paradise.Another pathetic attempt to label India
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Hi Folks , well don't say I didn't warn you yet again. Air Asia will find the going tough in India and that is primarily due to their weak management team. I have been a strong critic of their senior team and I say it again , wonderkid Mittu is not the man to head them at this point. You need seasoned folks running the show. It has come to the point where their survival in India seems suspect. India is a tough market to operate in and you need tact to get your work done.Just for all you Western boys , remember that every country operates in a different way.The sooner you adjust , the better you thrive.You can't run things in India like you do in Malaysia , you can't run things in England like you do in India and you can't function in Saudi Arabia like you do in Russia.So when I hear Fatboy Tony bragging about what he's going to do in India and his sidekick Mittu chirping along , I sit back , relax and enjoy the show. For I know that their end will be like many I have seen before .
skydancer Bang on, TF as usual thinks he can walk on water and dealing with the redtape in India it will take time. like it or leave it.
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Doesn't look like you really know TF. He will succeed in India for sure. You will see. Let's revisit this topic one year after they started operations and you will see... India is ripe for a revolution in air travel and AirAsia is the perfect company to just do that!
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7 pilots after waiting for almost a year....no work....just sitting around. Why did they not send these pilots to relieve others in the group? Wont it be a waste of resources paying for no work?
AAI is planning to buy ATRs as feeders.
AAI is planning to buy ATRs as feeders.
