With its nominees on the board, Tata Sons will have the controlling stake of 51%.
Ticket sales to open from Friday, says group CEO Tony Fernandes
The Federation of Indian Airlines had challenged the aviation regulator's decision this week to issue an operating permit to AirAsia India.
AirAsia recently said it would set up a 49:30:21 joint venture with the Tata Sons and Telestra Tradeplace of Indian investor Arun Bhatia to launch a new Indian airline.
It will focus on the under-utilised airports instead of offering services in main hubs such as Mumbai and Delhi.
Air Asia will hold 49 per cent and the remaining will be owned by Tata Sons and Telestra Tradeplace Pvt.
The proposal was cleared by the Foreign Investment Promotion Board, Finance Ministry said in a statement.
Tata said that their exposure in the airline was merely a "financial investment", does not represent a major re-entry into the airlines business.
The airline is also looking at cities in the northeast.
The company, which will be first direct flight between Chandigarh and Bengaluru, will offer ticket at a minimum rate of Rs 1,900 inclusive of all taxes.
Malaysian budget airline AirAsia moved a step closer to securing permission to launch operations in India, with Civil Aviation Minister Ajit Singh on Monday saying that all issues concerning the carrier's application have been resolved.
BJP leader Subramanian Swamy on Friday moved the Delhi High Court seeking an order restraining the Centre from granting any approval to AirAsia for its operations in India.
A bench of Chief Justice N V Ramana and Justice Manmohan issued notice to Civil Aviation Ministry, DGCA and others and sought their response by October 30.
The airline's chief had said it would focus more on tier-II cities. Already, the airline connects some of its major destinations from Tiruchirapalli, one of the busy tier-II hubs in Tamil Nadu.
The bench of Chief Justice N V Ramana and Justice Pradeep Nandrajog issued notices to the Centre, Foreign Investment Promotion Board and Commerce and Civil Aviation ministries and sought their responses by October 30.
The first A320 flight is scheduled to leave Bengaluru on June 12 afternoon, AirAsia India chief executive officer Mittu Chandilya told reporters in Chennai.
'Indian aviation sector needs much more investment and new entrants.'
The losses are primarily because the venture operated only for 18 days in June, with only two flights.
AirAsia may breakeven by June this year.
AirAsia India was set up as a three-way joint venture.
"We are waiting for any input from any quarter," Civil Aviation Secretary R N Choubey said, adding, "We have not received anything so far".
The carrier planned to bring in a plane a month from March to build a fleet of at least 10 jets by the end of the year.
AirAsia, which is a joint venture between Tata Sons Ltd, TelestraTradeplace currently flies from Bengaluru to Chennai, Kochi, Goa and vice versa.
AirAsia India began operations in June 2014.
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Swamy had written to the Election Commission, the DGCA and the Civil Aviation Ministry not to grant a license to the carrier.
AirAsia is facing a legal challenge from Bharatiya Janata Party MP Subramanian Swamy, whose petition comes up for hearing at the Delhi HIgh Court on Wednesday.
Company chief Tony Fernandes said the name of Chairman for AirAsia India board would also be disclosed soon
As per information available with the Corporate Affairs Ministry, the new company was incorporated on November 5 with a total paid up capital of Rs 500,000 and has been registered in New Delhi.
'JRD Tata was a visionary who established civil aviation in India'.
Inching closer to launch its operations, new no-frill carrier AirAsia India on Saturday took delivery of its first Airbus A-320 as it landed in Chennai after flying in from Toulouse headquarters of the European aircraft manufacturer.
The disappointment of the year is government's failure in finalising the re-drafted aviation policy.
AirAsia's rival airlines in India have kept themselves super-busy in the past few months -- by moving court against the former's launch, adding flights on the routes where AirAsia is operating, and engaging in a price war.
AirAsia says deal not violative of shareholder agreement.
Most airlines have fattened their profits, turned the corner, or cut their losses, except AirAsia India.
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