FIPB nod to Tata-SIA airlines
The Foreign Investment Promotion Board (FIPB) gave approval to Tata-SIA Airlines Ltd. – an upcoming joint venture of Singapore Airlines and Tata Sons entailing an initial foreign investment of USD 49 million.
- This is Tata’s second venture in the aviation sector after its tie-up with Malaysian carrier Air Asia in February for a low cost passenger air service.
- The venture will have Tata Sons as the majority partner with a 51% stake, while Singapore Airlines will hold 49%. The two firms, which plan to set up the airline with an initial investment of $100 million, announced their J.V. agreement on September 20, 2013.
- The venture is viewed as a result of the decision taken by the government in September 2012 when it allowed overseas airlines to invest up to 49% in local airlines. Earlier, foreign investors, but not airlines, had been allowed to hold up to a 49% stake in local airlines.
Following the liberalization, Tata Sons announced a venture with Malaysia’s AirAsia to form a local low-fare airline. AirAsia will hold a 49% stake in it and Tata Sons 30%. The balance will be held by Arun Bhatia of Telestra Tradeplace Pvt Ltd.
Related Posts
Month: Current Affairs - October, 2013