The proposed aviation venture between Singapore Airlines and the Tata Group which Business Traveller Asia-Pacific reported earlier (see here) has gained new ground, as the two parties have received approval from the Corporate Affairs Ministry to use the name “Tata SIA Airlines Limited”.
The Tata Group applied to register the name last month on the ministry’s electronic platform, MCA21. With the approval, Tata SIA Airlines Limited now stands registered from Delhi.
As per investment regulations in India, majority shares of business establishments in the country must be controlled by local companies. Therefore, Tata Sons is to own 51 per cent in the airline while SIA will have the other 49 per cent.
Tata Sons is a holding company of the Tata Group, an Indian conglomerate based in Mumbai. The group also maintains a three-way venture with Telestra Tradeplace and Air Asia for the proposed low-cost carrier, Air Asia India (see here).
The two partners are making an initial investment of US$100 million to launch the airline, which will offer full-service passenger services on both domestic and international routes.
They have already applied for permission from the Foreign Investment Promotion Board to establish the new carrier in India. A decision is expected to be made on October 24.
For more information, visit www.singaporeair.com
Clement Huang
