- Recently AirAsia India announced the launch of its maiden flight from Bangalore to Goa offering a low fare of Rs. 990 with taxes.
- Federation of Indian Airlines (FIA) requested the govt to advise Directorate General of Civil Aviation (DGCA) not to permit AirAsia India to proceed to fly. Its arguments:
- The DGCA had hastened to clear AirAsia India’s flight schedule to pre-empt a review of this matter by the new govt.
- Clearances granted to the airline by Finance and Foreign Investment Promotion Board was illegal therefore the flying license is fraudulent.
- FDI needs to be encouraged in, but not at the cost of domestic industry.
- FDI by foreign airlines in domestic carriers was meant for existing players and not new ones.
- Read at:http://www.thehindu.com/todays-paper/tp-business/fia-seeks-to-stop-airasia-india-launch/article6071043.ece
Exams Perspective:
- Directorate General of Civil Aviation (DGCA)
- Foreign Investment Promotion Board (FIPB)
- Lowcost Airlines
- FDI