Singapore Airlines and one of India’s largest private companies, Tata Sons, have signed a memorandum of understanding and applied for Foreign Investment Promotion Board (FIPB) approval to establish a new airline in India that will help further stimulate demand for air travel. The move will also give incumbent carriers, particularly Air India, added concern as they struggle to find equilibrium in the dynamic market.
Subject to regulatory approvals, the airline will be based in New Delhi and will operate under a full-service model. Tata will own 51 per cent and Singapore Airlines 49 per cent.
“We have always been a strong believer in the growth potential of India’s aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market,” said Singapore Airlines CEO Goh Choon Phong.
“Tata Sons is one of the most established and respected names in India. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel. We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India.”
Added the chairman of the proposed joint venture, Prasad Menon, “It is Tata Sons’ evaluation that civil aviation in India offers sustainable growth potential. We now have the opportunity to launch a world-class full-service airline in India. We are delighted that we are partnering in this endeavour with the world renowned Singapore Airlines.”
Details of the airline’s branding, management team and products and services will be announced in due course.
Read more about India’s airline industry and Air India in the coming November issue of Australian Aviation.