AirAsia, the largest low-cost airline in Asia, has applied for the permission to launch a new airline in India in association with Tata Sons and Telestra Tradeplace of Arun Bhatia.

Malaysia based, AirAsia has submitted its application for a scheduled airline to the country's aviation ministry. The company said in its application that the airline will have four directors namely, Arun Bhatia, R Venkataram, Tony Fernandes and Bharat Vasvani. The airline is likely to operate fleet of 36 Airbus aircrafts in the coming five years.

joint-venture with the Tata group company, Tata Sons Ltd and Arun Bhatia's Telestra Tradeplace Pvt Ltd to enter the Indian market. AirAsia, the Tatas and Bhatia's Hindustan Aviation have already signed pact for the joint venture. Government officials hinted that the AirAsia Investment Ltd's (AAIL) proposal was included in the agenda of FIPB meeting.

Under the agreement, AirAsia holds a 49 per cent in a joint venture while, Tata Sons have a 30 per cent stake in the venture but will not be involved in the operations and Telestra Tradeplace has the remaining 21 per cent stake in the venture. Tatas will be represented by two non-executive directors of the company.

If the application is approved, AirAsia will become the first foreign airline to enter the domestic aviation market. AirAsia might invest about $50 million in the venture and the operations are expected to begin within this year if necessary permissions are obtained from the government.