The new airline venture, to be launched by AirAsia, Tata Group and Delhi-based businessman Arun Bhatia, may start flying from this year-end.
AirAsia CEO Tony Fernandes said "it is in the hands of the Indian regulator ... but most likely it will start by the fourth quarter" of this year or the winter season.
AirAsia will initially invest around
$50 million in the proposed airline that would launch operations with three to four Airbus A-320 aircraft. "We will scale up (the fleet) quickly thereafter," he said.
AirAsia has applied to India's Foreign Investment Promotion Board (FIPB) for approval for starting a new airline.
According to regulatory filings in Kuala Lumpur, AirAsia will own 49 per cent of the new airline venture. It has also applied to India's Foreign Investment Promotion Board (FIPB) for approval. The Tata Group and Telestra Tradespace will be minority shareholders, holding the remaining 51 per cent.
The airline would be based in Chennai and in the initial phase concentrate on destinations in South India where AirAsia already operates.
Fernandes said the new airline will initially have staff strength of about 300 people.
(With PTI inputs) 
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