Tata to launch new airline in India: top 10 facts

Tata Sons has signed a Memorandum of Understanding or Mou with Singapore Airlines to launch the new airline.

Tata Sons and Singapore Airlines will jointly invest $100 million to set up the full service airline.

In the new airline, Tata Sons will hold 51 per cent, while Singapore Airlines will hold 49 per cent stake. 16 years ago Tata Group and Singapore Airlines had proposed to form a private airline with 40 per cent equity contribution from the Singapore carrier, but the venture was shelved.

The proposed airline will be based in New Delhi and operate under the full service model.

Tata Sons has already applied to the Foreign Investment Promotion Board or FIPB for approval to launch the airline.

The initial board will have two members nominated by Tata Sons and one nominated by Singapore Airlines.

The chairman of the new airline will be Prasad Menon, who has been nominated by Tata Sons, an official statement said.

"It is Tata Sons' evaluation that civil aviation in India offers sustainable growth potential. We now have the opportunity to launch a world-class, full-service airline in India. We are delighted that we are partnering in this endeavour with the world renowned Singapore Airlines," Mr Menon said.

Details of the airline's branding, management team and products and services will be announced in due course, Tata Sons said.

The Tatas already have a partnership with AirAsia to start a low-cost airline in India. It is expected to be operational by October, AirAsia group chief executive Tony Fernandes had said. Indian law allows 49 per cent FDI or foreign direct investment in aviation.