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Air Asia seeks full ownership for Indonesian subsidiary
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Air Asia Group CEO Tony Fernandes (Courtesy/The Star/ANN)
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ow-cost carrier Air Asia Group CEO Tony Fernandes has said ASEAN countries, including Indonesia, should start to reevaluate the foreign ownership cap for airlines.
Indonesia's policy under the negative investment list (DNI) stipulates that foreign ownership of airlines is limited to 49 percent.
"What is the benefit of an airline being owned 49 percent, if the people of ASEAN can benefit from full ownership?" he asked rhetorically on Thursday.
He cited a World Economic Forum report on foreign investment in airlines that stated when a foreign entity can own more than 49 percent of an airline, more jobs are created.
The model promoted by the World Economic Forum is also relevant to the current ASEAN Open Sky Policy, taking full effect this year, along with the ASEAN Economic Community (AEC).
He said he had discussed the idea with Finance Minister Bambang Brodjonegoro. (dmr)
