Singapore Airlines-Tata airline gets the nod

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SG airlinesThe Indian Foreign Investment Promotion Board (FIPB) has approved Tata group’s proposal to set up a full service airline in partnership with Singapore Airlines, paving the way for the new aviation venture, the Economic Times reported.

The board has not imposed any condition on the venture, India’s Economic Affairs Secretary Arvind Mayaram said. An earlier proposal by the Tata group to set up a low-cost airline together with Malaysia’s Air Asia had encountered some problems a few months ago.

Group holding company Tata Sons will hold 51 per cent stake in the airline Tata SIA Airlines, while Singapore Airlines will hold the remaining through an initial $49-million investment. This is the third attempt by Tatas and SIA to enter Indian skies. The Tata Group had applied for FIPB approval on September 20, the day it announced it wanted to form an airline with Singapore Airlines.

The airline will apply now to the civil aviation ministry for a no-objection certificate and then the country’s aviation regulator for a flying licence. The company plans to operate a full-service airline that will take on Jet Airways and Air India and plans to initially invest around $100 million to launch operations, expected some time next year.

In February, Tata group also announced a low-cost carrier with AirAsia and Delhi-based businessman Arun Bhatia. The FIPB had approved the venture, in which the group is a minority partner, in April, two months after it had sought its approval.

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Reading Time: 1 minute

The Indian Foreign Investment Promotion Board (FIPB) has approved Tata group’s proposal to set up a full service airline in partnership with Singapore Airlines, paving the way for the new aviation venture, the Economic Times reported.

Reading Time: 1 minute

SG airlinesThe Indian Foreign Investment Promotion Board (FIPB) has approved Tata group’s proposal to set up a full service airline in partnership with Singapore Airlines, paving the way for the new aviation venture, the Economic Times reported.

The board has not imposed any condition on the venture, India’s Economic Affairs Secretary Arvind Mayaram said. An earlier proposal by the Tata group to set up a low-cost airline together with Malaysia’s Air Asia had encountered some problems a few months ago.

Group holding company Tata Sons will hold 51 per cent stake in the airline Tata SIA Airlines, while Singapore Airlines will hold the remaining through an initial $49-million investment. This is the third attempt by Tatas and SIA to enter Indian skies. The Tata Group had applied for FIPB approval on September 20, the day it announced it wanted to form an airline with Singapore Airlines.

The airline will apply now to the civil aviation ministry for a no-objection certificate and then the country’s aviation regulator for a flying licence. The company plans to operate a full-service airline that will take on Jet Airways and Air India and plans to initially invest around $100 million to launch operations, expected some time next year.

In February, Tata group also announced a low-cost carrier with AirAsia and Delhi-based businessman Arun Bhatia. The FIPB had approved the venture, in which the group is a minority partner, in April, two months after it had sought its approval.

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