NEW DELHI, Feb 22 — The regulatory body governing the safety aspects of civil aviation in India, the Director-General of Civil Aviation (DGCA), has found no reason to put on hold the application by AirAsia India for an air operator permit (AOP).
The move now clears the path for AirAsia India, which has received objections, including from a political leader and recently from within the aviation industry, citing various reasons.
The regulatory body said a three-member committee, under the chairmanship of its Joint Director General, A.K. Sharan, was constituted to examine the objections/representations.
The committee received 18 representations, out of which, two representations via the Federation of Indian Airlines and Inter-Globe Aviation Ltd, it said in a public announcement.
“I agree with the report and conclusions drawn by the committee, after detailed examination of the objections/issues raised in the representations. I, therefore, do not find any reason to not consider the application of AirAsia India, for grant of such permit,” said DGCA Director-General Dr. Prabhat Kumar in the statement.
AirAsia India, which is a 49:30:21 per cent joint venture between AirAsia, Tata Sons and Arun Bhatia of Telestra Tradeplace was launched in February 2013 and was subsequently approved by the Foreign Investment Promotion Board (FIPB) and the Civil Aviation Ministry.
It also received the “No Objection Certification” from the Civil Aviation Ministry.
AirAsia India was the first airline to be launched since the Indian government allowed a 49 per cent foreign direct investment in the civil aviation sector by foreign carriers in September 2012.
The Ministry of Civil Aviation, while granting the initial NOC to AirAsia to operate Schedule Air Transport Services, have also considered all the above aspects, it said.
Subramaniam Swamy’s public interest litigation….
As for the public interest litigation filed by Dr Subramaniam Swamy in the Delhi High Court, the court refused to grant any interim stay and observed no case for the grant of interim relief sought was made out and the High Court was pleased to dismiss the application, it said.
“In view of the rapid growth of the Indian civil aviation, there is a strong need for facilitating air traffic by encouraging existing airlines, as well as, allowing new entrants so that the Indian public have optimum availability of air traffic services, as well as, improved global and domestic connectivity at reasonably affordable tariffs,” said DGCA.
It is also necessary to bring operational efficiency and expertise to existing airlines so as to ease their financial hardship.
This can only be brought by stiff competition and improved work culture, which can only be provided by the introduction of new entrants, it added.
The Indian aviation industry is in debt to the tune of about US$12.6 billion (US$41.4 billion) and has US$8.6 billion (RM28.35 million) in cumulative losses.
-– BERNAMA
