Tata SIA joint venture gains regulatory approval

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By admin July 10, 2014 14:42

Tata SIA joint venture gains regulatory approval

India’s Directorate General of Civil Aviation (DGCA) has dismissed objections filed against the planed Tata SIA joint-venture, clearing the way for the carrier to receive its Air Operators Permit.

In a statement, the DGCA said that six representations were received from other carriers after it invited interested parties to express their views on the Tata SIA venture. Four of the six carriers registered objections.

In response to these objections, the DGCA noted that 51% of the new carrier will be held by an Indian company. Its chairman, who will be appointed by Tata, will be Indian. Tata will also appoint four of its six directors, and SIA just two.

The issue of control revolved around whether Tata will have “substantial ownership and effective control.” The DGCA said that Tata’s 51% stake satisfies its interpretation of “substantial control.”

Tata SIA is a 51/49% joint-venture between India’s Tata group and Singapore Airlines.

admin
By admin July 10, 2014 14:42
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