Desperate to shrug off charges of inertia, UPA II will fast-track the Tata-Singapore Airlines’ proposal to set up a full-service carrier. While top government sources say clearances will be given without any unnecessary delays, the attempt will be to make the proposed airline take off within the remaining tenure of this regime.
The Tata-AirAsia proposal was cleared in about eight months and the Directorate General of Civil Aviation (DGCA) is expected to issue the licence by October-end and it can start flying by December. “If all documents are in place, Tata-SIA proposal will also be given the goahead by our government,” said a source, admitting an “unnecessary and avoidable” delay in the other aviation FDI of Jet-Etihad.
Sources close to aviation minister Ajit Singh say he is keen to have strong players in India’s otherwise cash strapped airline industry. Also, Tata-SIA and Air India will launch direct flights from India to far-off places and help the airports in metros develop into hubs.
The government is upbeat on Tata-SIA and Tata-AirAsia taking wing as these ventures have very strong international airlines as key partners. While budget airline AirAsia India’s 21% stakeholder, Arun Bhatia of Telestra Tradeplace, is reportedly upset due to the Tatas tying up with Singapore Airlines to form a full-service airline, the aviation ministry is not perturbed by the Tatas’ holding in both the airlines.
While the government has decided to expedite the latest proposal of a full-service airline from the Tatas, it hopes that the stiff competition between AirAsia and SIA does not sour both the proposed start-ups. The DGCA will begin working on AirAsia India’s licence as Ajit Singh gave it a no-objection certificate last Friday.
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