Tata-Singapore Airlines aviation venture approved
New Delhi – The proposed aviation venture between the Tata Group and Singapore Airlines has received approval from the Corporate Affairs Ministry to use the name ‘Tata SIA Airlines Limited’.
Starting the process of incorporating a new company for this joint venture, the Tatas had applied late last month on the ministry’s electronic platform, MCA21, to register this name.
The joint venture, Tata SIA Airlines, plans to offer full-service passenger services on domestic and international routes.
The application for registration of this name was filed through submission of form ‘1A’, which is the first step towards incorporation of a new company.
The registration is generally followed by submission of various other documents, including the article of association, and details of the company’s board of directors, share capital, business areas etc.
Tata SIA Airlines is among the first major companies to be incorporated under the new Companies Act, 2013 that came into effect earlier this month.
The airline’s brand name is yet to be announced.
Tata Sons Ltd, the holding company of salt-to-software conglomerate Tata group, will hold a 51 per cent stake in the new company, while Singapore Airlines would have the remaining 49 per cent.
The two partners are making an initial investment of $100 million to launch the airline, which may take off next year after getting all the clearances required.
They have already sought approval from the Foreign Investment Promotion Board (FIPB), which was earlier scheduled to take up the proposal on October 18, but the meeting got postponed to October 24.
This is a third attempt by the Tatas and SIA to enter the Indian civil aviation sector.
The Tatas have a long history of association with civil aviation in India. JRD Tata had started Tata Airlines in 1932, which was later in 1946 renamed as Air India and was subsequently nationalised in 1953.
In February this year, the Tatas also announced a partnership with Malaysia’s AirAsia for a low-cost carrier in India, wherein Arun Bhatia’s Telestra Tradeplace is third partner.
The Tata Group and Singapore Airlines have assured the government that the control of their proposed venture would always remain in Indian hands, while seeking approval to offer full-service passenger services on both domestic and international routes.
The initial board of the new carrier will have three members, which would be later expanded to six members with six nominees of Tata group.
The JV would also provide air transport carriers for passengers and freights alike as well as supporting services to air transport, like operation or airport flying facilities, radio beacons, flying control centres and radar stations.
Source: ndtv.com
