New Delhi, March 6: Civil aviation minister Ajit Singh on Wednesday said AirAsia's planned joint venture in India with Tata Sons could face some procedural problems.
He, however, mentioned that he does not see any other big hurdle for the venture in the country. India's Foreign Investment Promotion Board will soon meet to consider the proposal.
If approved, the proposed joint venture will mark the entry of Tata Group into the aviation sector. Tata Group is said to have a 30 per cent stake in the venture, while AirAsia will have a 49 per cent share.
Earlier, Tony Fernandes, chief executive officer, AirAsia, announced that he has already selected a CEO for AirAsia's India venture. The total capitalisation that has been proposed for AirAsia's venture is $30 million with Tata Sons' equity exposure capped at $9 million.
