Even as its no-frills venture AirAsia India awaits the flying licence from the regulator DGCA to launch its operations, the Tata’s joint venture (JV) 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 to the Tata-SIA joint venture, which will enable the company to approach the 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.
ADVERTISEMENT
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.
As per 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.
ADVERTISEMENT
The joint venture received approval from the Foreign Investment Promotion Board last October.
The board, which would be headed by Mr. Menon, would be subsequently expanded to include six directors. All these names have been sent to the Home Ministry for security clearance.