New Delhi: Tatas' proposed aviation venture with Singapore Airlines has got Corporate Affairs Ministry's approval to use the name 'Tata SIA Airlines Limited', which plans to offer full-service passenger services on domestic and international routes.
Starting the process of incorporating a new company for this joint venture, Tatas had applied late last month on the Ministry's electronic platform, MCA21, to register this name.
According to the latest information available with the Ministry, the name has been approved now and the company, Tata SIA Airlines Limited, stands registered from Delhi.
The application for registration of this name was filed through submission of form '1A', which is the first step towards incorporation of a new company.
The registration is generally followed by submission of various other documents, including the Article of Association, and details of the company's board of directors, share capital, business areas etc.
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 airline's brand name is yet to be announced.
Tata Sons Ltd, the holding company of salt-to-software conglomerate Tata group, will hold 51 per cent stake in the new company, while Singapore Airlines would have 49 per cent.
The two partners are making an initial investment of USD 100 million to launch the airline, which may take off next year after getting all the clearances required.
They have already sought approval from the Foreign Investment Promotion Board, which was earlier scheduled to take up the proposal on October 18, but the meeting got postponed to October 24.
This is the third attempt by Tatas and SIA to enter the Indian civil aviation sector. Tatas have a long history of association with civil aviation in India. JRD Tata had started Tata Airlines in 1932, which was later in 1946 renamed as Air India and was subsequently nationalised in 1953.
In February this year, Tatas also announced a partnership with Malaysia's AirAsia for a low-cost carrier in India, wherein Arun Bhatia's Telestra Tradeplace is third partner.
Tatas and Singapore Airlines have assured the government that control of their proposed venture would always remain in Indian hands, while seeking approval to offer full-service passenger services on both domestic and international routes.
The initial board of the new carrier will have three members, which would be later expanded to six members with six nominees of Tata group. The JV would also provide air transport carriers for both passengers and freights as well as supporting services to air transport, like operation or airport flying facilities, radio beacons, flying control centres and radar stations.
Updated Date: Dec 20, 2014 23:34 PM