Singapore Airlines (SIA) has unveiled plans to launch a new airline in India.
The company has signed a Memorandum of Understanding (MoU) with Indian conglomerate Tata Sons and submitted an application with the country’s Foreign Investment Promotion Board (FIPB) to establish the new full-service carrier.
Subject to the deal being approved, the new airline will be based in New Delhi and will be 51% owned by Tata, with SIA holding the remaining 49%. The airline will be chaired by Prasad Menon of 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 SIA’s CEO, 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.”
The move would mark Tata’s second joint venture with an international carrier, after the company joined forces with AirAsia earlier this year to create a Chennai-based low-cost carrier. And Menon said the company sees strong potential in the Indian aviation sector.
“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,” the new airline’s chairman said.
Details of the airline’s branding, management, products and services will be announced in due course. For SIA, this would be its fifth passenger airline brand, following Singapore Airlines, Scoot, SilkAir and Tiger Airways. The company also owns a stake in Virgin Australia.