Get ready to enjoy the best flying rates in the world as Kuala Lumpur's Air Asia will enter India in domestic flight segment to be the first Foreign Direct Investment in the airline sector after the rules were relaxed only recently by the Government. They will team up with Tata Sons, of the largest conglomerate in India, Tata Group and the son-in-law of steel tycoon Lakshmi Mitta, Amit Bhatia who owns the Telestra Tradeplace, an investment vehicle of the Bhatia family, to launch a new airline in India.
This will bring back the Tata Group into the aviation sector 60 years after its exit from the industry. While Air Asia would be the major stake holder in the nation, Tata Sons will hold 30% of the shares and remaining would be the investment of the Bhatia family. The office will have headquarters in Chennai.
This joint venture will begin operations in the last quarter of 2013 under the AirAsia brand, the 48-year-old AirAsia CEO Fernandes told the media in a conference call. The reputation of Air Asia in the Asian countries for their prices, impeccable timing etc is well known. With the entry of Air Asia into the currently poor state of the domestic airline sector, things are going to change dramatically.