AirAsia CEO Tony Fernandes faces corruption probe in India

Reading Time: 1 minute

Tony Fernandes, CEO of of AirAsia Group, is being investigated by the Indian federal police for allegedly paying bribes to influence local aviation policy. India’s Central Bureau of Investigation (CBI) has named Fernandes and other officials from AirAsia and its Indian unit in its investigation, an official told reporters on May 29 in New Delhi, Bloomberg reported.

The charges laid out by the CBI allege Fernandes, along with Tharumalingam Kanagalingam, former deputy group CEO of Malaysia-based Air Asia Berhad, and R Venkataramanan, director of AirAsia India, bribed Indian officials through middlemen to influence policies, including obtaining a flying permit and approvals to fly internationally, the official said.

A CBI spokesman said the bureau was conducting searches at AirAsia’s offices, including in Delhi and Mumbai, without elaborating.

AirAsia India said in a statement it refuted any allegations of wrongdoing and was cooperating with all regulators and agencies “to present the correct facts”. The parent group, AirAsia, and Fernandes himself were not available for comment.

The Malaysian low-cost carrier in 2014 launched domestic flight operations in India along with local joint venture partner Tata Sons.

The probe poses uncertainties to AirAsia’s expansion plans. Fernandes has identified India as one of the main pillars of his “pan-Asian dream” as he seeks to capture a share of a market dominated by Gulf-based carriers and Air India. With the India unit, he was planning more domestic flights and international operations are on the cards early next year.

Shares of the company slipped as much as 6.95 per cent in Kuala Lumpur on May 30.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Tony Fernandes, CEO of of AirAsia Group, is being investigated by the Indian federal police for allegedly paying bribes to influence local aviation policy. India’s Central Bureau of Investigation (CBI) has named Fernandes and other officials from AirAsia and its Indian unit in its investigation, an official told reporters on May 29 in New Delhi, Bloomberg reported.

Reading Time: 1 minute

Tony Fernandes, CEO of of AirAsia Group, is being investigated by the Indian federal police for allegedly paying bribes to influence local aviation policy. India’s Central Bureau of Investigation (CBI) has named Fernandes and other officials from AirAsia and its Indian unit in its investigation, an official told reporters on May 29 in New Delhi, Bloomberg reported.

The charges laid out by the CBI allege Fernandes, along with Tharumalingam Kanagalingam, former deputy group CEO of Malaysia-based Air Asia Berhad, and R Venkataramanan, director of AirAsia India, bribed Indian officials through middlemen to influence policies, including obtaining a flying permit and approvals to fly internationally, the official said.

A CBI spokesman said the bureau was conducting searches at AirAsia’s offices, including in Delhi and Mumbai, without elaborating.

AirAsia India said in a statement it refuted any allegations of wrongdoing and was cooperating with all regulators and agencies “to present the correct facts”. The parent group, AirAsia, and Fernandes himself were not available for comment.

The Malaysian low-cost carrier in 2014 launched domestic flight operations in India along with local joint venture partner Tata Sons.

The probe poses uncertainties to AirAsia’s expansion plans. Fernandes has identified India as one of the main pillars of his “pan-Asian dream” as he seeks to capture a share of a market dominated by Gulf-based carriers and Air India. With the India unit, he was planning more domestic flights and international operations are on the cards early next year.

Shares of the company slipped as much as 6.95 per cent in Kuala Lumpur on May 30.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid