Indian domestic airline lobby Federation of Indian Airlines (FIA) has sought the intervention of Prime Minister Manmohan Singh to stall the Directorate General of Civil Aviation (DGCA) from issuing the Air Operators’ Permit (AOP) to AirAsia India. This request was made on the basis that current policy permitting foreign airlines to invest in airlines applied to operating airlines and not new entrants with new international partners.
The FIA asks the Prime Minister to clarify the correct interpretation of the meaning of substantial ownership and effective control, prior to grant of AOP.
“Effective control has not been considered by the Foreign Investment Promotion Board (FIPB) while approving NOC….and until there is clear determination of substantial ownership and effective control, we submit that the NOC has not been appropriately approved and needs to be considered afresh,” FIA Associate Director Ujjwal Dey said.
“We submit that the grant of AOP to AirAsia without these issues being determined and that too in such a great hurry, would be against the public interest and public policy.”