Tata-Singapore Airlines deal causes stir in India

SG airlinesThe recent deal between Singapore Airlines and industrial conglomerate Tata Group to set up a new airline with base in New Delhi has raised criticism by another industry player.

Arun Bhatia, whose Telestra Tradeplace is one of the partners in AirAsia India, the soon-to-be-operational three-way venture that also includes Malaysia’s AirAsia and Tata Sons, said that he was “completely in the dark” about any talks for the full-service carrier between the Tatas and Singapore Airlines.

“It is unethical on their part to get into two joint ventures at the same time,” said Bhatia.

“How can they maintain secrecy of operations in two airlines and run them profitably?”

Bhatia owns 21 per cent in AirAsia India and said if he had the option he would buy the Tata stake (30 per cent)  in the carrier.

According to Economic Times India, sources familiar with the matter said AirAsia, the 49 per cent partner and the key driver of the low-cost airline, and its chief Tony Fernandes knew about the parallel negotiations that the Tatas were having with Singapore Airlines and had also given their “stamp of approval”.

One of the sources said both the airline propositions were different and do not compete with each other. “To me, these are convenient balloons that are being floated to perhaps come in the way of a smooth takeoff.”

 



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The recent deal between Singapore Airlines and industrial conglomerate Tata Group to set up a new airline with base in New Delhi has raised criticism by another industry player. Arun Bhatia, whose Telestra Tradeplace is one of the partners in AirAsia India, the soon-to-be-operational three-way venture that also includes Malaysia's AirAsia and Tata Sons, said that he was "completely in the dark" about any talks for the full-service carrier between the Tatas and Singapore Airlines. "It is unethical on their part to get into two joint ventures at the same time," said Bhatia. "How can they maintain secrecy of operations...

SG airlinesThe recent deal between Singapore Airlines and industrial conglomerate Tata Group to set up a new airline with base in New Delhi has raised criticism by another industry player.

Arun Bhatia, whose Telestra Tradeplace is one of the partners in AirAsia India, the soon-to-be-operational three-way venture that also includes Malaysia’s AirAsia and Tata Sons, said that he was “completely in the dark” about any talks for the full-service carrier between the Tatas and Singapore Airlines.

“It is unethical on their part to get into two joint ventures at the same time,” said Bhatia.

“How can they maintain secrecy of operations in two airlines and run them profitably?”

Bhatia owns 21 per cent in AirAsia India and said if he had the option he would buy the Tata stake (30 per cent)  in the carrier.

According to Economic Times India, sources familiar with the matter said AirAsia, the 49 per cent partner and the key driver of the low-cost airline, and its chief Tony Fernandes knew about the parallel negotiations that the Tatas were having with Singapore Airlines and had also given their “stamp of approval”.

One of the sources said both the airline propositions were different and do not compete with each other. “To me, these are convenient balloons that are being floated to perhaps come in the way of a smooth takeoff.”

 



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Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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