Tata Sons, AirAsia to discuss joint venture’s no-compete rule

Tata Sons and AirAsia will discuss issues related to the no-compete clause, a part of the joint venture between AirAsia Berhad, Tata Sons and Telestra Tradeplace for AirAsia India, Business Standard reported on Tuesday.

The two groups are in dispute over a no-compete clause included in the Memorandum of Agreement signed between the parties and partner company Telestra Tradeplace, which restricted all parties from investing in any competing airline that provided services similar to AirAsia.

According to this, Tata Sons, along with the other two companies, cannot invest in any airline that provides low-cost passenger airline services on narrow-body aircraft flying on domestic and international routes under four hours, the report said.