Tata group on 19 September 2013 announced that it entered into an agreement with the Singapore Airlines for initiating the full-service carrier in India. For this purpose, Tata Group and Singapore Airlines signed a Memorandum of Understanding for the new airline. The new airline will be New Delhi based and will be operating under the full-service model.
In the newly formed airline company, Tata Sons will own 51 percent and Singapore Airlines will own 49 percent. Tata group already entered into the partnership with the AirAsia Bhd in order to initiate the low-cost airline in India.
In order to seek the approval for establishment of new airline in India, Tata Sons has already applied to the Foreign Investment Promotion Board (FIPB). At the start-up level, the board will have two members nominated by Tata Sons and one nominated by Singapore Airlines. Prasad Menon will be the Chairman of this new airline, as nominated by the Tata Sons.
The other details such as the branding, products and services as well as the management team of the new airline will be announced after some time.
It is important to note that earlier in mid 90s; Tatas had entered into partnership with Singapore Airlines for starting domestic airline. However, the Government of India had rejected the proposal of Tata at that time.
What: Signed MoU
When: 19 September 2013