New Delhi: The Foreign Investment Promotion Board (FIPB) will consider Tata Sons’ and-Singapore Airlines (SIA) proposal to start a full-service airline on October 18, the finance ministry said on Tuesday.
Tata Sons had tied up with SIA on September 19 to launch a full-service carrier in India under the proposed aviation venture Tata-SIA Airlines Limited, at an initial investment of $100 million. The Tatas will be the driving force in the joint venture with a 51 per cent stake, SIA would take the rest for $49 million.
Tata Sons’ brand custodian and chief ethics officer Mukund G Rajan had said on Monday the company was hopeful of getting approvals for the proposal. Besides FIPB, the venture will require approvals from the directorate general of civil aviation, the tax department and other ministries.
According to the proposal before FIPB, substantial ownership and effective control of the proposed airline will be with the Tatas, while Singapore Airlines will have a minority representation on the board and “will not be in a position to have ‘de facto’ control over the board”. The board of the proposed Tata-SIA Airlines Ltd will have six directors, Tata Sons and Singapore Airlines said in an application to FIPB last Thursday.
Read news in full 08/10/13 Business Standard
No comments:
Post a Comment