New Delhi: Nearly two decades after their first attempt to operate an airline in India fell by the wayside, Tata Sons and Singapore Airlines announced on Thursday that they have signed a Memorandum of Understanding to set up a full-service airline.
Asked whether the launch of the new airline would not lead to a conflict of interest with Tata Sons’ three-way joint venture with AirAsia and Telstra Tradeplace for a low-cost airline, a Tata Sons spokesman said: “The two airlines do not compete in the same space. AirAsia has been fully aware of this joint venture and has no objection to the partnership.”
Civil Aviation Minister Ajit Singh told newspersons that aviation rules do not bar the Tatas from having two ventures and added that it was a matter for the Securities and Exchange Board of India and the Corporate Affairs Ministry.
The proposed airline could still face some hurdles as the Ministry of Civil Aviation had earlier argued that the change in FDI policy was meant to provide a lifeline to existing airlines and not start new ones.
Read News In Full 19/09/13 Business Line
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