Tata Sons-Singapore Airlines carrier plans to launch operations by June next year
Tata Sons-Singapore Airlines carrier plans to launch operations by June next year
By ET Bureau | 26 Oct, 2013
MUMBAI: The Tata Sons-Singapore Airlines carrier which got a nod from the Foreign Investment Promotion Board on Thursday aims to launch operations by May-June 2014, its chairman said on Friday. Also, Tata Group's chairman emeritus Ratan Tata said the company will look at Air India, if the government decides to put it up for privatisation. "We hope we will be able to launch by May-June 2014," said Prasad Menon, chairman of the airline venture.
Earlier in the day Menon, Tata and Singapore Airlines CEO Goh Choon Phong met aviation minister Ajit Singh.
"I do not see any problems. The DGCA will have to be satisfied. It depends on how fast the Tatas are able to provide the data related to fleet, parking space, airport slots," said aviation minister Ajit Singh.
Tata Sons will hold 51% stake in the airline while the rest will be held by Singapore Airlines. The two partners plan to initially invest $49 million into the airline, which will go up to $100 million
The airline company, which hasn't been officially given a brand name yet, on Thursday received a nod from the FIPB, a month after it had applied to the government body. It will now have to receive a formal approval from the finance ministry, after which it will have to apply to the aviation ministry for a no-objection certificate and then India's aviation regulator for a flying permit. Menon said that the airline may use planes from Singapore Airlines' fleet.
Tata Sons has a second tie-up with AirAsia for launching a low-fare carrier in India. That is now awaiting a flying permit from the DGCA. When asked whether the Tatas would be interested in buying a stake in Air India, Ratan Tata said they would look at it if the government decided to privatise it.
India's civil aviation ministry has yet not made any official announcement of any plan to privatise Air India. But Singh has said in interviews that the government can consider it, if other political parties do not have a problem.
Air India was in 1953 renamed from Tata Aviation Services after the government decided to privatise it. Tata Aviation was started by Jehangir Ratanji Dadabhoy Tata, the group's former head. He piloted its first commercial flight on October 15, 1932 from Karachi to Mumbai in a single-engine Puss Moth aircraft.