AirAsia entering Indian airspace

The award makes AirAsia the first foreign company to attempt to capture the rising demand for services in India’s aviation sector.

AirAsia India will be a joint venture with the well-known Tata Group, based in Chennai in South India. AirAsia, which itself is Asia's largest low-cost carrier, will make an initial investment of 800m rupees and will own 49 percent of the new airline, while Tata Sons will have a 30 percent stake. Arun Bhatia, the owner of investment firm Telestra Tradeplace, will have the remaining share.

AirAsia, which is known as a pioneer of low-cost travel in Asia, already operates flights into Indian cities including Bangalore, Kochi and Chennai.