Malaysia's AirAsia Bhd, Asia's biggest budget carrier, said on Wednesday it is seeking approval to establish a joint venture involving unlisted Indian firms Tata Sons Ltd and Telestra Tradeplace Pvt Ltd.
"We have carefully evaluated developments in India over the last few years, and we strongly believe that the current environment is perfect to introduce our low fares," AirAsia chief executive Tony Fernandes said in a statement.
AirAsia, through its investment arm AirAsia Investment Ltd, intends to own 49 percent of the new airline, with the remaining stake held by the two Indian firms. The venture plans to operate from Chennai in southern India and provide domestic flight options, said AirAsia.
The news comes after the carrier denied last year it was bidding for a stake in India's SpiceJet Ltd.