10.7.14

Tata-SIA update

The Tata-Singapore Airlines (SIA) JV domestic carrier is all set to take to the skies by September, making it the third domestic full service carrier along with Air India and Jet Airways.DGCA on Wednesday disposed off all the objections against the airline’s application for grant of flying licence.
This effectively paves the way for the airline to now get all the required infrastructure to start the airline, get the flying licence from the DGCA and start flights. However, the order will be subject to the final verdict of the Delhi High Court where the purview of the government's FDI policy has been challenged.
The objections against Tata-SIA came from the Federation of Indian airlines (FIA, an umbrella organization of existing domestic carriers) and an individual on three grounds — the FDI policy allowing foreign airlines to invest in Indian carriers was meant for investing in existing airlines.
DGCA chief Prabhat Kumar disposed off all of these objections. He said the airline meets all the three basic requirements of a JV airline — it is registered and has its place of business in India; the chairman and two-thirds of directors are Indian and that the substantial ownership and effective control is with Indian nationals.

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