DGCA clears deck for Tata-SIA airline take-off
Tata Sons will hold a majority stake of 51%, while the SIA will own 49%
New Delhi: Aviation regulator DGCA that functions under the purview of the Government on Wednesday overruled objections from certain quarters and cleared the decks for grant of the air operator’s permit (AOP) for the proposed Tata-SIA Airlines in which Tata Sons would have the majority stake of 51 percent and Singapore Airlines owning the remaining 49 percent.
Meanwhile, the Economic Survey 2013-14 tabled in Parliament on Wednesday also mentioned the approval for grant of no objection certificate (NoCs) for the joint venture, indicating that the BJP — led NDA Government is fully in favour of allowing Tata -SIA to start operations in the country as a full-service carrier.
Interestingly, BJP leader Subramanian Swamy was among those who had earlier publicly opposed grant of permission to the Tata-SIA joint venture to start operations in the country. Those who had petitioned the DGCA to oppose the grant of AOP to the joint venture had included the federation of Indian airlines (FIA), a body of existing Indian carriers.
In his order, director general of civil aviation (DGCA) Prabhat Kumar said, “I do not find any reason for not considering the application of Tata SIA Airlines for grant of AOP (scheduled). The objections raised by the representationists are not sustainable. It is therefore decided to consider the application of Tata SIA Airlines for issuance of AOP.”
The DGCA noted that the Tata-SIA airline company is registered in India and has its principal place of business in New Delhi. It also noted that in the board of the company, two-thirds of the directors are Indian citizens and that the chairman is also an Indian citizen and that Tata-SIA had complied with the principle of substantial ownership being vested in Indian nationals.
The DGCA also held that the issue of FDI by foreign airlines in greenfield airlines has already been examined by the Foreign Investment Promotion Board (FIPB) while allowing 49 percent equity participation by SIA in the Tata-SIA joint venture.