Government officials have said that the Foreign Investment and Promotion Board (FIPB) is likely to consider the Air Asia's proposal to enter the Indian market on March 6.

Air Asia, which is a low cost airline based in Malaysia, is planning to form a joint-venture with the Tata group company, Tata Sons Ltd and Arun Bhatia's Telestra Tradeplace Pvt Ltd to enter the Indian market. Tata Sons will have a 30 per cent stake in the venture but will not be involved in the operations. Government officials hinted that the AirAsia Investment Ltd's (AAIL) proposal has been included in the agenda of the FIPB meeting, which is to be held on March 6.

AirAsia, the Tatas and Bhatia's Hindustan Aviation have already signed pact for the joint venture. Under the agreement, AirAsia will acquire 49 per cent in a joint venture with Tata Sons and Telestra Tradeplace. The Malaysian airline is looking to take advantage of the recent decision by the Indian government to ease the Foreign Direct Investment (FDI) policy in aviation.

If the proposal is approved by the FIPB, 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.

Civil aviation minister Ajit Singh has said that Air Asia's entry is not likely to impact the domestic airlines in the country.