Government approves Tata-SIA airline's name
21 October 2013
The ministry of corporate affairs has approved the use of the name `Tata SIA Airlines Ltd' for the proposed airline venture between the Tata Group and Singapore International Airlines.
The name registration is the first step to getting a new company incorporated.
The proposed joint venture is yet to receive approval from the Foreign Investment Promotion Board (FIPB) as the board has postponed a meeting to take up the proposal from 18 October to 24 October.
Tatas will have majority ownership in the joint venture with 51 per cent interest while Singapore International Airline will own the remaining 49 per cent stake.
The two airlines have assured the government that that majority control of their proposed venture would always remain in Indian hands.
The partners will now submit other documents such as the share capital of the proposed venture, composition of the board of directors, articles of association, areas of operation, etc with the concerned regulatory authorities.
While the airline's brand name is yet to be announced, Tata SIA Airlines is among the first major companies to be incorporated under the new Companies Act, 2013, that came into effect earlier this month.
The joint venture, which will have an initial investment of $100 million, expects to take off next year after all government and regulatory approvals are obtained.
The Tata group has another joint venture with Malaysia's AirAsia, in which it owns 31 per cent stake with the Malaysian carrier holding 49 per cent and Arun Bhatia's Telestra Tradeplace, the third partner holding 20 per cent.