India's Foreign Investment Promotion Board (FIPB) has formally approved the creation of a new joint venture airline between AirAsia and Tata Group. In a press statement issued on 25 March, the ministry says it approved AirAsia's application to invest 800 million Indian rupees at a meeting on March 6.
Shares in Jet Airways India fell nearly 3% and SpiceJet’s fell 3.4% on the news as concerns are raised over increased competition in the country.