Singapore Airlines and Tata Sons to launch new airline in India

Now just waiting for regulatory approvals.

Singapore Airlines and 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, said the companies in a joint release.

Subject to FIPB and other regulatory approvals, the airline will be based in New Delhi and will operate under the full-service model. Tata Sons will own 51% and Singapore Airlines will own 49%.

The initial Board will have three members, two nominated by Tata Sons and one nominated by Singapore Airlines. The Chairman will be Mr Prasad Menon, nominated by Tata Sons.

“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, Mr 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, Mr 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.

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