A day after FIPB cleared the Tata-Singapore Airlines' (SIA) airline venture, Tata group Chairman Emeritus Ratan Tata and SIA chief Goh Choon Phong on Friday met Civil Aviation Minister Ajit Singh exuding confidence of launching flights by May-June next year.
Starting the process of incorporating a new company for its proposed aviation venture with Singapore Airlines, Tata group has sought to register this entity as 'Tata SIA Airlines Limited'.
Singapore Airline along with its Indian JV partner have got clearance from the aviation ministry.
Full-service airline Tata-SIA, submitted its application for the grant of Air Operator's Permit (AOP or flying license) in April.
In their new venture, Tata SIA Airlines Ltd, Tata Sons would hold 51 per cent stake and Singapore Airlines 49 per cent.
As per information available with the Corporate Affairs Ministry, the new company was incorporated on November 5 with a total paid up capital of Rs 500,000 and has been registered in New Delhi.
Earlier, the JV company got a go-ahead from the Foreign Investment Promotion Board in October 2013 and was awaiting AOP for launching a full-service carrier.
FIA has filed two separate petitions challenging the approvals granted to Tata-Airasia and Tata-SIA Airlines deals respectively.
The exact figure not known yet but advertisements for recruiting employees would hit print this week.
Tatas and Singapore Airlines have assured the government that control of their proposed airline venture would always remain in Indian hands, while seeking approval to offer passenger services on both domestic and international routes.
Making a strong case for approval of their proposed airline JV, Tatas and Singapore Airlines have said that the venture would create significant job opportunities in India and would boost the country's image as an international investment destination.
Singapore Airlines has given new brand names to two carriers it controls - SilkAir (short-haul) and Scoot (low-cost, long-haul.
JV will set up a full-service carrier based out of New Delhi.
With the FIPB giving approval to the Tata-Singapore Airlines joint venture to start a full-service carrier, Tata Group Chairman Emeritus Ratan Tata on Friday met Commerce and Industry Minister Anand Sharma.
Several new airlines are likely to fly in the Indian sky in the coming months with the government giving flying licence to four of the six companies, which had sought permits for launching scheduled, private or charter air operations.
The Indian government allowed foreign airlines to buy up to 49 per cent stakes in Indian carriers in September 2012.
Tata-SIA have applied to the Civil Aviation Ministry for a no-objection certificate to start a full-service airline in India.
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The proposal of Tatas and Singapore Airlines for a new joint venture, entailing foreign investment of $49 million, is likely to come up before the Foreign Investment Promotion Board for approval on October 18.
Singapore Airlines first approached the Tatas, its old choice for a venture in India, and was aware of AirAsia negotiations.
However, this was subject to conditions like substantial ownership and effective control of the airline being vested in Indian nationals.
The new airline will leverage business class seats to improve yield per passenger and fly only to big cities.
Besides the major metros, the proposed airline would also connect Srinagar, Patna, Chandigarh and Jammu.
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As per the FIPB agenda, the proposal will be taken up on October 18.
A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw posted the matter for hearing on Friday.
Tata Sons is all set to acquire a residual stake of 16.33 per cent in AirAsia India from its joint venture (JV) partner AirAsia Berhad for $19 million (or Rs 142 crore) by early next year. The valuation is in accordance with the previous transaction under which AirAsia Berhad had sold its 32.6 per cent stake, said a banking source. Tata Group had increased its stake in AirAsia India at a valuation of $115 million.
Competition Commission of India (CCI) has issued a show cause notice to the parties with respect to the proposed merger of Tata Group airlines Vistara and Air India, according to a source. The fair trade watchdog issues notice asking why an investigation should not be initiated only after forming a prima-facie opinion that the deal could adversely impact competition in the marketplace. Vistara and Air India are the two full-service carriers that are part of the Tata Group, and Singapore Airlines holds a 49 per cent stake in Vistara.
Scholarships, sports and spirit define Phee Teik Yeoh, the new CEO of Vistara in India
Eyeing potential business opportunity, Boeing Corporation is planning to approach the proposed Tata-Singapore Airlines.
It started commercial operations as a full service carrier on January 9.
While four of the directors would be nominated by Tata Sons, the other two would be representatives of Singapore Airlines.
Jet Airways, IndiGo and GoAir achieved operating profits of Rs 122.6 crore (Rs 1.22 billion), Rs 795.8 crore (Rs 7.95 billion) and Rs 85.1 crore (Rs 851 million) respectively during the same period, Minister of State for Civil Aviation K C Venugopal said in reply to a question.
Phee Teik Yeoh, who has returned to the SIA HQ in Singapore worked hard to make Vistara the airline of choice. New CEO Leslie Thng would have the job of cutting losses while going international.
On Thursday, DGCA issued a public notice seeking suggestions and objections to the grant of permit.
Tata Sons and Singapore Airlines (SIA), which recently received a no-objection certificate from the ministry of civil aviation to start a full-service airline (Tata-SIA Airlines), are in the process of securing an import licence for 20 Airbus A320 aircraft.
"The strategic divestment transaction of Air India successfully concluded today with transfer of 100 per cent shares of Air India to M/s Talace Pvt Ltd along with management control," DIPAM secretary Tuhin Kanta Pandey said in a tweet. A new board, led by the strategic partner, takes charge of Air India, he added.
Phee Teik Yeoh, the recently anointed chief executive officer of the airline, speaks to Business Standard on his aim of changing the rule of the game in the aviation sector by redefining service and operational experience for travellers accustomed to mere functionality.
The full-service airline has faced multiple challenges in its run.
Vistara launched first flight from Hyderabad to New Delhi on Sunday.
The only two truly successful private airlines in India - Jet Airways and IndiGo - have been set up and run by people who knew the ins and outs of the trade well before they took to the skies.
The Delhi High Court on Wednesday allowed a plea to implead DGCA as a party to a PIL seeking quashing of approvals being granted by the Centre to operationalise the $30 million deal between Tata Sons and Malaysia-based AirAsia.
