AirAsia to invest up to $60 million into JV with Tata Sons

KUALA LUMPUR Thu Feb 21, 2013 2:14pm IST

Air Asia CEO Tony Fernandes answers a question during a news conference in central Sydney January 6, 2010. REUTERS/Daniel Munoz/Files

Air Asia CEO Tony Fernandes answers a question during a news conference in central Sydney January 6, 2010.

Credit: Reuters/Daniel Munoz/Files

Related Topics

Stocks

   

KUALA LUMPUR (Reuters) - Malaysia's AirAsia Bhd(AIRA.KL), Asia's biggest budget carrier, will invest between $30 to $60 million into its new airline venture in India, said chief executive Tony Fernandes on a conference call with the media on Wednesday.

The company has sought approval to establish a new airline with unlisted firms Tata Sons Ltd and Telestra Tradeplace Pvt Ltd.

AirAsia, through its investment arm, AirAsia Investment Ltd, intends to own 49 percent of the venture with the remaining stake held by the two Indian firms. The venture plans to operate from Chennai in southern India and provide domestic flight options.

India's aviation industry, which has seen continued losses due to high operating costs and regulatory uncertainty, was opened to foreign investors in September last year.

AirAsia presently flies to four south Indian cities and the eastern city of Kolkata in addition to 20 countries across Asia.

(Reporting By Al-Zaquan Amer Hamzah and Yantoultra Ngui; Editing by Niluksi Koswanage)

FILED UNDER:

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage