Salt to software conglomerate Tata group today said it has entered into an agreement with Singapore Airlines to start a full-service carrier in India.
The two parties have signed a Memorandum of Understanding for the airline, which will be based in New Delhi and operate under the full-service model, Tata Sons said in a statement.
The Statement has been added over that "Tata's will own 51 percent and Singapore Airlines will own 49 per cent," The Tatas already have a partnership with AirAsia Bhd to start a low-cost airline in India.
Tata Sons has applied to the Foreign Investment Promotion Board (FIPB) for approval to establish the new airline in India, adding the initial board will have two members nominated by Tata Sons and one nominated by Singapore Airlines.
The Chairman will be Prasad Menon, as nominated by Tata Sons.
"It is Tata Sons' evaluation that civil aviation in India offers sustainable growth potential. Tata Sons are now ready to launch a world-class, full-service airline in India. They are hopeful and delighted that they are partnering in this endeavour with the world renowned Singapore Airlines,"
Expressing similar views, Singapore Airlines CEO Goh Choon Phong said: "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." He also added that with the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel.
Company is confident enough that the joint venture airline will help to stimulate market demand and provide economic benefits to India.
The Company has not disclosed much details as of now about the airline's branding, management team and products and services, they will announce it in due course.
Lets hope for the best...
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