Tata Group, Singapore Airlines venture gets aviation ministry nod

Even as its venture with Tony Fernandes-led AirAsia awaits flying licence from the aviation regulator to launch its operations, Tata Group's joint venture with Singapore Airlines has got the nod from the aviation ministry.

In a late evening development on Wednesday, the Civil Aviation ministry granted a no-objection certificate (NOC) to the Tata-SIA joint venture, which will enable the company to approach sector regulator Directorate General of Civil Aviation (DGCA) for securing an air operator's permit.

While confirming the development, a Tata-SIA spokesperson said they are yet to receive an official communication from the Ministry on the issue.

The JV has already reportedly received the mandatory security clearance for its three directors from the Union Home Ministry, a major pre-requisite for getting a NOC from the aviation ministry.

The JV has 51 per cent stake from Tata Sons while the rest is held by Singapore Airlines.

According to the MoU inked between Tata Sons and Singapore Airlines on September 19 last year, the board of the proposed JV would initially comprise three directors.

While two of them - Prasad Menon (chairman) and Mukund Rajan (Tata Group brand custodian and chief ethics officer) - would be nominated by the Tatas, Mak Swee Wah is the director nominated by SIA.

The board, which would be headed by Menon, would be subsequently expanded to include six directors. All these names have been sent to the Home Ministry for security clearance.

The joint venture received approval from the Foreign Investment Promotion Board (FIPB) last October.