Singapore Airlines and Tata Sons to Launch Airline in India

Singapore Airlines Tata Sons JVSingapore Airlines and Tata Sons have submitted proposal with Foreign Investment Promotion Board to start new airline in India. The Tata Group-Singapore International Airlines joint venture will start full service airline in India. Tata Sons already has planned to launch low-cost airline in India in joint venture with Air Asia.

Indian aviation sector has seen lot of activity in past 3-4 years. Tata Group will own 51 percent stake in the joint venture and Singapore Airlines will own 49 percent stake. Indians have started travelling more and domestic air travel has registered high growth. Additionally, some small domestic low-cost airlines have managed to succeed in keeping the costs low and stay afloat.

Singapore Airlines-Tata Sons JV airline will have Prasad Menon as Chairman. The board will have three members, two will be nominated by Tata Sons. Indian aviation sector has very low seats per capita at 0.07 compared to 2.49 for United States and 1.05 for Japan. Indian aviation sector is expected to grow at higher pace in coming years. Tata Sons is expected to launch low-cost carrier in India with Malaysia based Air Asia by the end of the year. The company has claimed that the new venture with Singapore Airlines has no conflict with Air Asia venture.

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