Growing Indian middle class economy needs LCCs: Govt

Tata Sons has not intimated anything so far to the Union government about the possible alliance with Malaysian low-cost carrier (LCC) AirAsia, the Union Civil Aviation Minister Ajit Singh has said on February 24.

There has been a speculative talk of Tata forging an alliance with AirAsia to launch a low cost airline. AirAsia is a Malaysian low-cost airline. The Minister attributed the need of another low cost airline to the growing Indian middle class and economy.

Ajit Singh also reminded of Ratan Tata’s denial in this regard in the past. But the Minister added that there has been growth in the Indian aviation sector and there is room for another low cost airliner despite the turbulence the sector is undergoing presently.