Documents and email exchanges reviewed by Mint prove that AirAsia India is run by AirAsia Bhd, in contravention of Indian laws that say that while Indian airlines can allow a foreign airline to own up to 49% in them, they have to be controlled and run by the Indian partners.
This control could explain the churn at the top at AirAsia India, as well as the angst of one of the shareholders.
In 2013, AirAsia Bhd said it would partner with Tata Sons Ltd, and Arun Bhatia of Telestra Tradeplace Pvt. Ltd to launch an airline in India.
AirAsia Bhd was to own 49% shares in the firm, Tata Sons 41% and Bhatia the rest. Tata Sons announced on 28 March that it would buy out Bhatia.
The board of the Indian company is chaired by S. Ramadorai, a former chief executive officer (CEO) of Tata Consultancy Services Ltd. The board also includes Tata group representatives P.K. Ghose and R. Venkataramanan, besides AirAsia Bhd's Tony Fernandes and Bhatia of Telestra
On 17 April 2013, AirAsia Bhd signed a brand licence agreement with AirAsia India Pvt. Ltd.
Tharumalingam Kanagalingam was the signatory to it on behalf of AirAsia Bhd, and Anthony Fernandes (Tony Fernandes) on behalf of AirAsia India.
The 62-page agreement says AirAsia India "will observe and comply strictly with the following operating requirements which are to be determined in AirAsia's sole discretion".
The compliance includes just about every possible area--ancillary revenues, branding, catering and in-flight services, customer experience, engineering, finance, flight operations, innovation, commercial and technology, marketing, network planning, people, quality and assurance, revenue management, safety, sales and distribution.
12/04/16 Tarun Shukla/Mcclatchy/AviationPros
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This control could explain the churn at the top at AirAsia India, as well as the angst of one of the shareholders.
In 2013, AirAsia Bhd said it would partner with Tata Sons Ltd, and Arun Bhatia of Telestra Tradeplace Pvt. Ltd to launch an airline in India.
AirAsia Bhd was to own 49% shares in the firm, Tata Sons 41% and Bhatia the rest. Tata Sons announced on 28 March that it would buy out Bhatia.
The board of the Indian company is chaired by S. Ramadorai, a former chief executive officer (CEO) of Tata Consultancy Services Ltd. The board also includes Tata group representatives P.K. Ghose and R. Venkataramanan, besides AirAsia Bhd's Tony Fernandes and Bhatia of Telestra
On 17 April 2013, AirAsia Bhd signed a brand licence agreement with AirAsia India Pvt. Ltd.
Tharumalingam Kanagalingam was the signatory to it on behalf of AirAsia Bhd, and Anthony Fernandes (Tony Fernandes) on behalf of AirAsia India.
The 62-page agreement says AirAsia India "will observe and comply strictly with the following operating requirements which are to be determined in AirAsia's sole discretion".
The compliance includes just about every possible area--ancillary revenues, branding, catering and in-flight services, customer experience, engineering, finance, flight operations, innovation, commercial and technology, marketing, network planning, people, quality and assurance, revenue management, safety, sales and distribution.
12/04/16 Tarun Shukla/Mcclatchy/AviationPros
