FIPB to take call on Tata-Singapore Airlines deal on October 18
New Delhi: The Finance Ministry on Tuesday said the Foreign Investment Promotion Board (FIPB) will take a call on a proposal by the Tata-Singapore Airlines venture to start a full-service airline on October 18.
As per the FIPB agenda, the proposal will be taken up on October 18.
The venture, to be called Tata SIA Airlines Ltd, will have Tata Sons as the majority partner with a 51 percent stake, while Singapore Airlines will hold a 49 percent stake.
The companies had announced a pact to set up the airline with an initial investment of USD 100 million on September 19.
Singapore Airlines has approached the FIPB headed by Economic Affairs Secretary Arvind Mayaram for permission to invest USD 49 million in the proposed venture, sources said.
Tata Sons' brand custodian and chief ethics officer Mukund G Rajan had said yesterday they were hopeful of getting government approvals for the proposal.
Besides the FIPB, the venture will require approvals from agencies such as the Directorate General of Civil Aviation, the tax department and other ministries.
Tata Sons is the holding company of the Tata Group.
Substantial ownership and effective control of the proposed airline will be with Tatas, according to the proposal before the FIPB. Singapore Airlines would have a minority representation on the board and "will not be in a position to have 'de-facto' control over the Board."
The Tatas already have a partnership with Malaysian carrier AirAsia for a low-cost airline that's likely to start operating in India later this year.