India's federal police on Tuesday (29) raided the local offices of budget carrier AirAsia as investigators accused the airline's boss Tony Fernandes of illegally obtaining licences.
The Central Bureau of Investigation said it was probing allegations that Fernandes lobbied Indian officials for favourable treatment regarding licences for his low-cost carrier.
"We have filed a case against Air Asia chief Tony Fernandes, his colleagues and government officers over procuring licences illegally," CBI official R.K. Gaur told AFP.
Officers had raided AirAsia offices in major Indian cities as part of its investigation, he added.
Fernandes was accused by investigators of campaigning to have aviation regulations relaxed in his favour, the Press Trust of India (PTI) reported.
One of these was the so-called 5/20 rule stipulating that companies must have five years of domestic experience and a fleet of 20 aircraft before being eligible to operate abroad.
Besides Fernandes, investigators also named an AirAsia director, an aviation consultant and unidentified Indian government officials in its preliminary case, PTI reported.
AirAsia and its local joint venture partner Tata Sons launched domestic flight operations in India in 2014 by offering eye-catching promotional fares to lure budget travellers.
Fernandes, a millionaire ex-music executive, has styled himself as Asia's answer to British tycoon Richard Branson.
The company ran into trouble this month when Air Asia India's CEO Amar Abrol stepped down, citing personal reasons.
The no-frills airline currently operates flights from its bases in Bengaluru and Delhi to several cities including Goa, Jaipur and Kochi.
A spokeswoman for AirAsia did not immediately comment on the case when contacted.
UK economy grew by 0.1 per cent in August, after contracting in July
IMF predicts Britain will have the second-fastest G7 growth in 2025
Economists warn growth remains weak ahead of Reeves’ November budget
Bank of England faces balancing act between inflation and sluggish growth
UK’s ECONOMY returned to growth in August, expanding by 0.1 per cent from July, according to official data released on Thursday. The slight rise offers limited relief to chancellor Rachel Reeves as she prepares for her November budget.
The Office for National Statistics (ONS) said gross domestic product for July was revised to show a 0.1 per cent fall from June, compared with a previous estimate that showed no change.
Earlier this week, the International Monetary Fund (IMF) said Britain’s economy is set to record the second-fastest growth among the Group of Seven nations in 2025, after the United States. However, with annual growth projected at 1.3 per cent, it remains insufficient to avoid tax rises in Reeves’ budget.
Fergus Jimenez-England, associate economist at the National Institute of Economic and Social Research, said early signs for September suggested limited growth in the third quarter. "Regaining momentum hinges on restoring business confidence and reducing uncertainty, which the government can support by setting aside a larger fiscal buffer in the upcoming budget," Jimenez-England said.
Sanjay Raja, chief UK economist at Deutsche Bank, said the figures indicated that the services and construction sectors were in a "pre-budget funk" and forecast that growth in the third quarter would be about half the Bank of England’s estimate of 0.4 per cent. "The UK economy has yet to see the full ramifications of the US trade war," Raja said. "Budget uncertainty is hitting its peak too – likely dampening discretionary household and business spending."
A Reuters poll of economists had forecast that GDP would expand by 0.1 per cent in August.
In the three months to August, growth rose slightly to 0.3 per cent from 0.2 per cent in the three months to July, supported by public health service activity while consumer-facing services declined, the ONS said.
The Bank of England, which held interest rates at 4 per cent in September, continues to navigate between persistent inflation and weak growth.
Governor Andrew Bailey said on Tuesday that the labour market was showing signs of softening and inflation pressures were easing after data showed unemployment at its highest since 2021 and a slowdown in private sector wage growth.
Monetary Policy Committee member Alan Taylor also warned on Tuesday that the British economy risked a "bumpy landing", citing the impact of US president Donald Trump’s trade tariffs.
Data published earlier this week showed weak growth in retail sales, partly reflecting concerns about possible tax increases in Reeves’ November 26 budget.
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