"Tata SIA Airlines Ltd." – TATA-Singapore Airlines joint venture gets approval for its name
The Ministry of Corporate Affairs approved the name “Tata SIA Airlines Ltd.” to be used for the proposed aviation venture of TATA with Singapore Airlines(SIA) which plans to offer full-service passengers sevices on domestic and international routes.
The initial investment in the project is estimated to be $100 million, with Tata Sons injecting $51 million for a 51% stake and Singapore Airlines pumping in $49 million for the remaining 49%. This is the third proposal in the aviation sector since the Government permitted 49% FDI in domestic airlines in September 2012.
Although Tata is already into a separate joint aviation venture with AirAsia and Telstra Tradeplace for a low-cost airline, there will be no conflict of interest as the two airlines do not compete in the same space. The Tatas have a long history of association with civil aviation in India. In 1932 JRD Tata had started Tata Airlines, which was later in 1946 renamed Air India and was subsequently nationalized in 1953.
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Month: Current Affairs - October, 2013