Tata SIA Airlines incorporated as an airline venture
11 November 2013
Tata SIA Airlines Ltd, the joint venture between the Tata group and Singapore International Airlines (SIA), has been incorporated as a public limited company with the filing of all requisite documents and details with the corporate affairs ministry.
The new company, with a total paid-up capital of Rs5 lakh, was incorporated on 5 November, with its registered office in New Delhi, according to information available with the corporate affairs ministry.
Tata Sons Ltd, the holding company of the Tata group, holds a majority 51 per cent stake in the joint venture airline while the Singapore International Airlines holds the remaining 49 per cent.
The documents for the incorporation have been signed by three directors -- Prasad Menon, Kersi Rustom Bhagat and Mukund Govind Rajan.
The Foreign Investment Promotion Board (FIPB) had already approved the proposed investment of $49 million by SIA in the joint venture, where Tatas are making initial investment of $51 million as per their shareholding structure.
The joint venture has been granted approval to offer full-service passenger services on both domestic and international routes on the assurance that it would continue to be majority held by the Indian group.
The board of the new airline will, however, have equal participation with three members each initially, which would be later expanded to six members each.
The JV will provide both passenger and freight services as well as supporting services to air transport, like operation or airport flying facilities, radio beacons, flying control centres and radar stations.
This is the third attempt by the Tatas and SIA to enter the Indian civil aviation sector and the joint venture in gearing up to launch a full-service airline on domestic and international routes.
The Tata group has a long history of association with civil aviation in India. J R D Tata had started Tata Airlines in 1932, which was later, in 1946, renamed as Air India and was subsequently nationalised in 1953.
Meanwhile, the Tata group had in February this year, also announced a partnership with Malaysia's AirAsia for a low-cost carrier in India, with Arun Bhatia's Telestra Tradeplace as a third partner.