Aviation ministry attempts to thwart AirAsia JV – as reported here in March

Confirming our suspicions, the minutes of foreign investment proposal-clearing committee have revealed that the civil aviation ministry did try to prevent the creation of an AirAsia JV in India and would have preferred Indian promoters — Tata Sons and Arun Bhatia — to have first set up an airline company, obtained a flying permit and then sold off 49% to the foreign partner. First reported in the Economic Times, the minutes state that although the creation of the airline is “supported in principle” that “the applicant should first set up the company, obtain licence from ministry of civil aviation and