Singapore Airlines, Tata Sons sign MoU to establish new Indian airline

Singapore Airlines and Mumbai-based conglomerate, Tata Sons, have signed a memorandum of understanding and applied for Indian Foreign Investment Promotion Board (FIPB) approval to establish a new airline in India. 

This marks the second attempt that both partners together have made to enter the Indian market. In the mid-90s, a similar venture to start a domestic Indian airline failed after the Indian government rejected Tata's proposal. 

In a press release issued Thursday, Tata said that subject to FIPB and other regulatory approvals, the airline will be based out of  and will operate under the full-service model with Tata Sons owning 51% and Singapore Airlines owning the other 49%. 

Tata said the initial board will have three members; two nominated by Tata Sons and one nominated by Singapore Airlines. The chairman will be Prasad Menon, nominated by Tata Sons. Details of the airline’s branding, management team and products and services will be announced in due course. 

The move comes barely five months after the Tata group got the nod from Indian regulatory authorities to partner Malaysia's AirAsia in setting up AirAsia India.

Source: CH-Aviation