Ownership and Control laws in India -DGCA gives Air Asia India the green signal

The High Court of Delhi had, vide order dated 11.11.2016 directed the Directorate General of Civil Aviation, India (the “DGCA“) to consider the “Brand Licensing Agreement” entered into between Air Asia Berhad and Air Asia India from the point of view of whether it altered or affected the rules regarding “effective ownership and control”.

The DGCA has on 08.02.2017 returned detailed findings, inter-alia holding that it does not find any of the terms and conditions of the “Brand Licensing Agreement” to dilute the “substantial ownership and effective control” of Air Asia India. Essentially this is a very important ruling for Air Asia India.

To see what happens in the future and whether this report of the DGCA dated 08.02.2017 is challenged further, is a matter of speculation.

The whole report can be found here.

Nitin Sarin

8th February 2017

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