 "With Ramadorai on board, Ratan Tata's AirAsia dream is flying")
S Ramadorai has been appointed as the Chairman of AirAsia India and with Ratan Tata an advisor to the airline’s board, it is clear that the new airline will be very close to Tata’s heart as well as mind.
Heart because he has been wanting to get into the aviation business for decades - more so now, when there is a chance to do a Nano to aviation by partnering with an airline which is globally known for its ultra low fares. With AirAsia India, Tata perhaps hopes to let thousands of Indians, who can’t afford to fly now, dream of taking to the skies. Much like his desire which actually led to the conception of the world’s cheapest car, the Tata Nano.
And the new airline is close to Tata’s mind because as an advisor to the AirAsia India board he will have trusted aide Ramadorai for company. Indeed, Tata himself may have been instrumental in getting Ramadoari on board.
Ramadorai is currently adviser to Prime Minister Manmohan Singh on the National Council on Skill Development and holds a Cabinet minister’s rank in the government. He’s also vice-chairman of TCS.
With Ramadorai there, it looks like Tata and his chosen team would perhaps be fully involved in taking crucial decision at the new airline. With Tata as advisor to the board, an ex-Tata Group veteran as Chairman and two Tata Sons nominees, why would AirAsia’s team not leverage the Tata Group’s reach and immense experience of handling the Indian consumer?
[caption id=“attachment_878029” align=“alignright” width=“380”]  Ratan Tata. Getty Images[/caption]
Air Asia is in a JV with Arun Bhatia of Telestra Tradeplace and the Tata group. AirAsia holds 49% in the joint venture and the Tatas hold 30%, while the balance is held by Bhatia.
Impact Shorts
More ShortsThe airline plans to begin by setting up base in Chennai, will offer ultra low fares like it does in the home market of Malaysia, will initially have a fleet of five aircraft of the Airbus 320 family but then scale up rapidly to 36 aircraft over a period of five years. It has already named Mittu Chandilya as CEO - Mittu has no previous experience in the aviation business.
When the three way agreement for setting up the airline was announced, the Tatas had made it clear that they will only be investing in the airline but operations would be handled by AirAsia’s team. Ratan Tata’s aversion to the aviation business was well known, founded as it was on bitter experiences he had not once but twice. First, when the Tata group tried to enter aviation by starting an airline in the early nineties in collaboration with Singapore International Airlines (SIA). And then again when he wanted to participate in the strategic disinvestment of Air India, again in collaboration with SIA. Both times, fierce competition and unscrupulous players in the business thwarted Tata’s plans.
This is perhaps why Tata wants to play it by the ear, engaging himself with the airline but not really taking day-to-day decisions.
As of now, AirAsia India’s initial NOC application is awaiting approval from the Ministry of Civil Aviation. Once the names of its top directors etc get security clearance from the Home Ministry, it will have to apply to the DGCA for a flying permit and for another NOC for AirAsia to import aircraft.
As per rules under which the Government opened up Indian airlines for investment from foreign airlines, the board must have majority Indian members and substantial control of the airline must remain in Indian hands at all times. Once the board of directors has been cleared, the airline will need approval from the Bureau of Civil Aviation Security and then approval of its base of operations which is Chennai.
The checklist of approvals to be sought before the first AirAsia domestic flight can operate in India is a very long one even after the stage of BCAS approval is reached. There will be examination of its flight safety and other training, aircraft’s airworthiness, its preparedness on ground handling and a range of other facilities.
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