Delhi HC refuses to block AirAsia's operating permit

New Delhi, May 9 (IANS) The Delhi High Court Friday refused to suspend the air operator's permit (AOP) granted to AirAsia for flying in India.

The high court order came on a plea filed by the Federation of Indian Airlines (FIA) against the decision of the Directorate General of Civil Aviation (DGCA) Wednesday to grant the operational permit to AirAsia.

A division bench of Chief Justice G. Rohini and Justice Pradeep Nandrajog disposed of the plea while denying any relief to FIA and said there is no urgency in the case.

"Whatever permit granted will be subject matter to the outcome of the writ petition pending in the high court," said the court.

The FIA had approached the court Thursday, opposing the permit granted to AirAsia and asked the court to restrain the company from selling tickets.

It pleaded that the central government should be restrained from allocating slots at airports to the airline as well as any scheduling of flights for AirAsia.

The petition stated that the Centre and the DGCA, by granting the permit to AirAsia, are over-reaching the authority of the high court by hurriedly taking decisions that amount to fraud in the court process.

The government March 26 last year approved AirAsia's proposal to set up a new airline in partnership with the Tata Group and the Arun Bhatia-promoted Telestra Tradeplace to create a low-cost airline in India.

The high court has been dealing with the case after BJP leader Subramanian Swamy and the FIA moved the court, seeking to block the commencement of AirAsia operations.

Swamy opposed clearance to the deal and cited a government policy that says that FDI up to 49 percent is allowed in existing airlines that are already operating and not to a new or proposed joint venture.