No major foreign control in AirAsia India and Vistara; Tatas deny rivals’ accusations in the ongoing 5/20 rule debate
Advertisement
Advertisement
The Tata group has absolutely denied the accusations made by its rivals that the carriers that it holds stakes in are violating the law on management control.
"Majority ownership and effective control of both airlines -
The release also said that it opposes the 5/20 rule because of national interest. As of now, the rules say that local carriers can only start international flights if they have been operating for at least five years and have 20 planes in their fleet.
The release added that the 5/20 rule must be abolished for Indian aviation to achieve its full potential and also to improve connectivity with the rest of the world. It further said that the rule has only served to benefit foreign carriers.
Advertisement
"In Air Asia, the Indian majority ownership is spread between two independent unrelated Indian shareholders who effectively have less shareholding then the foreign partner, namely AirAsia, Malaysia. De facto therefore, Air Asia, Malaysia is the largest shareholder," said Federation of Indian Airlines (FIA) in a statement.
It also alleged that since KPMG, which advised the ministry in drafting the aviation policy, is consultant to Singapore Airlines since June 2015, it might have suggested changes at their behest. To this, the civil aviation ministry told ET that it would do whatever was best for the industry.
Image source
Advertisement
- I spent 2 weeks in India. A highlight was visiting a small mountain town so beautiful it didn't seem real.
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- Essential tips for effortlessly renewing your bike insurance policy in 2024
- Indian Railways to break record with 9,111 trips to meet travel demand this summer, nearly 3,000 more than in 2023
- India's exports to China, UAE, Russia, Singapore rose in 2023-24
- A case for investing in Government securities
- Top places to visit in Auli in 2024