Tata SIA Airlines hopes to take wings by June
26 Oct 2013
Tata Singapore Airlines, the newest full-service airline to be incorporated in India, is banking on quick regulatory approvals to start operations by June next year.
With the Foreign Investment Promotion Board (FIPB) approving the 51:49 joint venture proposal by Tata Group and Singapore Airlines, the promoters have become bolder and are advancing the launch date for operations.
With the Tata Group holding a majority 51 per cent equity the new airline seeks to address the need for high-end air travel in one of the world's fastest-growing aviation markets.
"We are looking at very fast clearances. We hope that we will be able to launch by May-June," Prasad Menon, chairman of Tata SIA Airlines, said on Friday.
The airline has still to get clearance from a number of regulators, including a `no-objection certificate from the civil aviation ministry, the DGCA etc before it can hope to fly.
However, with both the authorities and the airline promoters confident of beating deadlines and SIA having its own ready fleet of aircraft, the new airline should be flying by June unless, of course, some legal hurdles crop up.
"I don't see any problems" in the new airline obtaining the clearances, aviation minister Ajit Singh said after meeting executives of Tata SIA Airlines.
The ministry of corporate affairs had, early this week, approved the use of the name `Tata SIA Airlines Ltd' for the proposed airline venture between the Tata Group and Singapore International Airlines.
The two airlines have assured the government that that majority control of their proposed venture would always remain in Indian hands.
The partners will now submit other documents such as the share capital of the proposed venture, composition of the board of directors, articles of association, areas of operation, etc with the concerned regulatory authorities.
Tata SIA Airlines will be among the first major companies to be incorporated under the new Companies Act, 2013, that came into effect earlier this month.
The Tata group has another joint venture with Malaysia's AirAsia, in which it owns 31 per cent stake with the Malaysian carrier holding 49 per cent and Arun Bhatia's Telestra Tradeplace, the third partner holding 20 per cent.