India's Ministry of Finance stated (26-Mar-2013) that based on recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on 06-Mar-2013, the Government has approved six proposals of Foreign Direct Investment (FDI), including two in the aviation sector as follows:
- AirAsia Investment Ltd: The Ministry said it approved the proposal to "set up a JV company to undertake the business of operation of scheduled passenger airlines" resulting in FDI/NRI inflows of "INR80.98 crore";
- Farnair Switzerland A.G: The proposal to "increase FDI in an Air Transport Business Company by purchase of shares from Indian shareholder" was approved resulting in FDI/NRI inflows of "INR1.35 crore".
AirAsia recently said it would set up a 49:30:21 JV with the Tata Sons and Telestra Tradeplace to launch the Indian carrier, which will be based in Chennai. Following the FIPB clearance, AirAsia India will now proceed to the next phase of the proposal, which is to approach the Civil Aviation Ministry for a no-objection certificate and then the Directorate General of Civil Aviation (DGCA) for an operating licence. [more - original PR]