Tata Sons is all set to gain full control over AirAsia India as its Malaysian parent has agreed to amend a controversial brand licensing agreement that gave it control of crucial functions, reported Business Standard.

The development, the report said, comes after Tata Sons and AirAsia Berhad decided to amend a controversial brand licensing agreement that gave the Malaysian firm control over crucial functions of the carrier.

The draft agreement submitted to the aviation ministry by the two groups, the report said, makes it clear that various departments such as sales and distribution, revenue management, network planning, catering and engineering, among others, will now be under the control of AirAsia India thus nullifying the need of prior approval from the Malaysian parent firm.

Further, the report said, Tata has already appointed key members of its group in to the key posts of the carrier. This includes appointment of Sunil Bhaskaran as chief executive of AirAsia India, and the upcoming appointment of Tata Sons president Banmali Agrawala as its chairman.

The 2013 agreement, the report said, gave the Malayasian group strategic power over the carrier as all key decisions were to be approved by it. This in turn had led to controversy in India. The civil aviation regulations in the country make it very clear that the effective control of all jointly held Indian carriers should be in the hands of the Indian firm.

Tata, the report said, owns 51 percent stake in the low-cost carrier while Air Asia controls the remaining 49 percent.

First Published:Dec 25, 2019 11:01 AM IST