Exclusive: AirAsia ties up with Tata Group, Hindustan Aviation to set up AirAsia India

KUALA LUMPUR: AirAsia has finally found an Indian partner which is not just influential but will hopefully guarantee its success in a highly competitive market-place.

Sources said on Wednesday AirAsia's founder Tan Sri Tony Fernandeshas teamed up with India's Tata group and Hindustan Aviation to set up a new airline to be known as AirAsia India.

In the deal, the Indian parties will take 51% equity stake while AirAsia will hold the remaining 49%, which is the equity it normally takes in its foreign joint ventures.

Of the 51%, sources said Tata Group will have 30% stake and Hindustan Aviation 21% equity stake.

The three parties is said to have signed an partnership agreement this week and have submited a proposal to the Indian government to seek a domestic air services licences also this week.

-thestar online.

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