New Delhi, May 8 IANS | 7 months ago

The Delhi High Court Thursday agreed to hear a plea by the Federation of Indian Airlines (FIA) to stay the air operator's permit (AOP) granted to AirAsia for flying in India.

A division bench of Chief Justice G. Rohini and Justice R.S. Endlaw posted the matter for May 9.

AirAsia received the AOP from the Directorate General of Civil Aviation (DGCA) Tuesday.

The FIA approached the court opposing the permit granted to AirAsia and asked the court to restrain the company from selling tickets.

It further pleaded that the central government should be restrained from allocating slots at airports to the airline as well as any scheduling of flights for AirAsia.

The petition stated that the Centre and the DGCA, by granting the operating permit to AirAsia, are over-reaching the authority of the high court by hurriedly taking decisions that amount to a fraud on court process.

The government March 26 last year had approved AirAsia's proposal to set up a new airline in partnership with the Tata Group and the Arun Bhatia-promoted Telestra Tradeplace to create a low-cost airline in India.

The high court has been dealing with the case after BJP leader Subramanian Swamy and the FIA had moved the court seeking a stay on the commencement of AirAsia operations.

Swamy had opposed clearance to the deal and cited a government policy that says that FDI up to 49 percent is allowed in existing airlines which are already in operation and not to new or proposed joint ventures.

AirAsia India, to be based in Chennai, will see the Malaysia Airline holding a 49 percent stake.

(Posted on 08-05-2014)

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