Subject to the regulatory approvals, the new airline will have 51 per cent shareholding in hands of Tata Sons and rest with the Singapore Airlines. The said airline will be based in New Delhi and will operate under the full-service model.
This would be Tata Group's second aviation take-off in the last one year as earlier it had tied up with AirAsia for a low-cost carrier which is still waiting to get regulatory approvals.
Besides, the board of new airline will be headed by Prasad Menon, a veteran Tata executive. The board will initially have three members, two nominated by Tata Sons and one nominated by Singapore Airlines.
Experts said that it would be good for passenger as new player will bring down fares and help fix the cartelization seen in industry which is driving up prices, affecting common-man.
Dion Global Solutions Ltd.