Singapore Airlines and India’s Tata Sons have signed a Memorandum of Understanding and have sought the approval of the Foreign Investment Promotion Board (FIPB) to set up a new airline in India. The development has brought cheer to the Indian aviation industry as it is believed that the new venture will increase demand for air travel and encourage more people to seek air tickets on flights.
Subject to mandatory regulatory approvals, the carrier will be based in India’s capital, New Delhi and will operate flights under the full-service model. Tata Sons will own 51% and Singapore Airlines will own 49% in the project.
The move is seen as a big boost to the loss-making aviation business in India. It is hoped that more people in India as well as Singapore will seek air tickets to fly between the two countries. Experts are hoping that that the new venture will push the traffic flow between Singapore and India, by offering more opportunities to book flights tickets.
India and Singapore are hugely popular holiday destinations, with each attracting millions of travellers every year. While it is given that the new airline will offer more option for locals who wish to travel between the two countries, even foreign travellers will be keen to book flights tickets with the an airline has major promoters backing it.
It is estimated that 75 per cent of Indian travellers book air tickets to Singapore for leisure, whereas 25 per cent hop aboard flights for business concerns.