Hope to get nod for JV with SIA: Tata Sons

Tata Sons today said it is “hopeful” of getting government approvals for the proposed full service airline in collaboration with Singapore Airlines.

“I think there is a process... So it (approval process of Tata-SIA) will take its natural course. We are hopeful that we will get all the approvals,” said Mukund G Rajan, brand custodian and chief ethics officer of Tata Sons.

The proposal of Tatas and Singapore Airlines for a new joint venture, entailing foreign investment of $49 million, is likely to come up before the Foreign Investment Promotion Board (FIPB) for approval on October 18.

The proposed venture will also require approvals from agencies such as the DGCA, the tax department as well as other ministries.

Rajan was talking to reporters after a “courtesy” meeting Department of Economic Affairs Secretary Arvind Mayaram here.

The government, he said, has been very supporting with regard to the Tata-SIA deal.

The new venture, to be called Tata SIA Airlines Ltd, will have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines will hold 49 per cent stake. The companies had earlier announced a pact to set up a new full-service airline with an initial investment of $100 million.