Tata-Singapore Airlines & Jet-Etihad deal shows foreign companies are betting on long term potential

Singapore Airlines' decision to launch a full service carrier in India with the Tatas as its majority partner, following UAE national carrier Etihad Airways recent acquisition of 24% stake in Naresh Goyal's Jet Airways, signals the willingness of foreign carriers to do business in India, especially with a long-term perspective.
The Tata Sons-Singapore Airlines venture, where the Tatas will hold 51% stake and Singapore Airlines the remaining 49%, is an extension of the vision of the Tata Group, which forged a tripartite partnership with AirAsia and Arun Bhatia's Telestra Tradeplace for low-cost carrier AirAsia's entry into India.
It also shows that the Tatas want to follow the hybrid business model, of being present in both lowcost and full-service models. Analysts believe that this full-service venture will focus more on west-bound travel while the AirAsia JV will stick to ASEAN routes.
Read News In full 20/09/13 Rajesh Naidu/Economic Times