Airborne again

Having struggled through much turbulence in their effort to enter the Indian aviation sector, the Tatas have finally entered into a joint venture with AirAsia, the continent’s largest budget, no frills airline headquartered in Malaysia. "I am pleased to announce Ratan Tata as the chief advisor to the board of AirAsia India. A legend in every sense. Building a powerful team… Persuading Tata to be advisor has not been easy,” announced AirAsia co-founder and Group CEO (chief executive officer) Tony Fernandes through Twitter in June 2013.

Ratan Tata: advising new airline

The Tatas will be reentering the airline industry in India after more than 60 years. With the Indian government allowing up to 49 percent FDI (foreign direct investment) in aviation, the parent company AirAsia would hold 49 percent, the Tata Group (Tata Sons) 30 percent and Delhi-based Telstra Tradeplace Private Limited 21 percent. AirAsia India is expected to start operations in a highly competitive and cut-throat Indian market towards the end of the year, operating from Madras. S. Ramadorai, former CEO who had led Tata Consultancy Services on its high growth trajectory, will head the board of AirAsia India. Though the Foreign Investment Promotion Board has cleared the proposal, the final clearances from the Union Home and Civil Aviation Ministry are awaited.