Tata-SIA venture irks AirAsia JV partners - Times of India

The author has posted comments on this articleSaurabh Sinha, TNN | Sep 21, 2013, 05.02AM IST NEW DELHI: On a day when union aviation minister Ajit Singh cleared the AirAsia India proposal to launch a low cost airline in India, cracks appeared in the relationship between its joint venture partners - AirAsia, Arun Bhatia and the Tatas. And it's the Tata Sons' tie-up with Singapore Airlines to launch a full service carrier which has reportedly irked Arun Bhatia of Telestra Tradeplace, who is among the three partners in the airline venture. Bhatia, who has a 21% stake in AirAsia India, has told ET Now that it was 'unethical' of the Tatas not to keep the partners informed about their proposed full service venture with Singapore Airlines. The ET Now report said that Bhatia was willing to buy out Tata Sons' 30% stake in AirAsia India, if offered. The Malaysian LCC has a 49% stake in the budget airline that is expected to be launched by the year-end. Bhatia did not respond to TOI's calls on the issue. The Air Asia file will now be sent to DGCA for licence issuance, which is just a mere formality. "I have approved their case today", Ajit Singh told TOI on Friday night. The AirAsia India board is going to meet on September 28 and Bhatia is going to raise this issue there. Tatas have got into two JVs for airlines — one with Singapore Airliens for a full service venture and another with AirAsia and Telestra Tradeplace to create a budget airline in India. Bhatia, was reported by ET Now as saying that this will end up hurting business interests of one of the two airlines. AirAsia chief Tony Fernandes, a compulsive tweeter, has maintained a stony silence on Tatas' latest announcement. Industry sources say the Malaysian LCC may not have taken the Tatas' full service deal favorably. AirAsia founder Tony Fernandes was aiming for a year-end commencement of services with its base in Chennai and connecting tier-II and tier-III cities in the southern region. The airline had readied human resource and infrastructure to start operations before November. The airline has recruited its top management staff, flight attendants and has also set up a small office at the Chennai airport. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEQlkTB7Q_V6R5jmM_9YZvDbKLsYg&url=http://timesofindia.indiatimes.com/business/india-business/Tata-SIA-venture-irks-AirAsia-JV-partners/articleshow/22830258.cms

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