FIPB to decide on Tata-Singapore Airlines joint venture plan on Oct 18

ETW Staff – Mumbai

According to PTI report, the Finance ministry stated that the Foreign Investment Promotion Board (FIPB) will take a call on a proposal by the Tata-Singapore Airlines venture to start a full-service airline, on October 18. The venture, to be called, Tata SIA Airlines, will have Tata Sons as the majority partner with a 51 per cent stake, while Singapore Airlines will hold a 49 per cent stake. The companies had announced a pact to set up the airline with an initial investment of US$ 100 million on September 19. Singapore Airlines has approached the FIPB headed by Arvind Mayaram, economic affairs secretary, for permission to invest US$ 49 million in the proposed venture, sources said. The Tatas’ already have a partnership with Malaysian carrier AirAsia for a low-cost airline that’s likely to start operating in India later this year.