Asia's largest budget carrier Air Asia has said that it plans to enter into a joint venture with Tata Sons and Telestra Tradeplace Pvt Ltd to establish an airline business in India.
"We have carefully evaluated developments in India over the last few years and we strongly believe that the current environment is perfect to introduce our low fares," AirAsia chief executive Tony Fernandes said in a statement.
AirAsia, through its investment arm, AirAsia Investment Ltd, intends to own 49 percent of the new airline with the remaining stake held by the two Indian firms. The venture plans to operate from Chennai in southern India and provide domestic flight options, said AirAsia.
India's airlines business is continuing to attract attention. Etihad is looking to pick a stake in Jet Airways, while there were reports that SpiceJet too is looking at foreign carrier interest in the company.