Tata-Singapore new company to be named as ‘Tata SIA Airlines Limited’
Tata group initiated the process of incorporating a new company for its proposed aviation venture with Singapore Airlines as it sought to register this entity as ‘Tata SIA Airlines Limited’.
Tata took the first step by filing an application for registration of this name with the Registrar of Companies through submission of form ‘1A’. The brand name of the proposed airline, however, is yet to be announced.
The initial investment in the project is estimated to be $100 million, with Tata Sons injecting $51 million for a 51% stake and Singapore Airlines pumping in $49 million for the remaining 49%.
This is the third proposal in the aviation sector since the Government permitted 49% FDI in domestic airlines in September 2012.
Although Tata is already into a separate joint aviation venture with AirAsia and Telstra Tradeplace for a low-cost airline, there will be no conflict of interest as the two airlines do not compete in the same space.
The Tatas have a long history of association with civil aviation in India. In 1932 JRD Tata had started Tata Airlines, which was later in 1946 renamed Air India and was subsequently nationalized in 1953.
Categories: Business, Economy & Banking
Tags: Current Affairs 2013