FIPB to take up 2 aviation investment proposals on March 6
Feb 24 2013 , New Delhi
The investment application by Malaysia's AirAsia, which plans to enter Indian airlines space through a joint venture with the Tata Group and another company, will also come up for consideration of the Foreign Investment Promotion Board (FIPB) headed by Economic Affairs Secretary Arvind Mayaram.
Farnair Switzerland AG had bought a majority stake in Quikjet last February. Tata Capital Ltd is one of the key investors in Quikjet Cargo.
Quikjet Cargo, which started operations in February 2012, carries out commercial operations within the country with a small ATR-72 turboprop plane and is in the process of expanding its fleet to have a pan-India network.
The Bangalore-based firm offers its services in domestic destinations for global air cargo companies, while Farnair provides planes and operational expertise, sources said.
Farnair will offer its aircraft for long-term lease, while also setting up a scheduled network. It plans to increase fleet as business grows.
AirAsia has applied to FIPB to take 49% in a venture with Tata Sons Ltd and Arun Bhatia's Telestra Tradeplace Pvt Ltd.
Other major FDI proposals on the FIPB agenda are that of YES Bank Ltd, ICICI Venture Funds Management Company and SIDBI Social Venture Trust.
The Board will again take up the application of the Bangalore based Bharat Electronics Limited. Earlier also, the FIPB had taken up the case in November 2012 but had deferred decision.