Following the collapse of plans to form an Indian private airline with Singapore Airlines (SIA), the Tata Group is again seeking to set up a carrier in the country.
The original project was blocked by a change in Government policy, which decided that foreign airlines could not invest in domestic carriers. The proposed airline, dubbed Tata Airlines, will be set up with Tata holding 40% of the $180 million equity. Tata is seeking foreign institutional investors to take a further 40%, and sources within the Tata group do not rule out the possibility of some form of link with SIA.
The airline wants to launch operations with seven 150-seat aircraft, with the Boeing 737-400 and 737-800 and Airbus A320 being considered. Tata will serve12 destinations in its first year.
Source: Flight International
