SIA ties up with Tata Sons to form new airline in India

It has finally happened!

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.
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.

 

It sounds like a lopsided board composition for 49%.