Mumbai: The proposed full-service carrier of Tata Sons and Singapore Airlines (SIA) will increase competition in the West-bound routes from India, according to aviation analysts. Nearly 70 per cent of global traffic from India is West-bound – to Middle East, EU and Americas.
“With this venture, Singapore Airlines will get a play in the growing international travel from India. SIA can also operate direct flights to Far East and Australia from India or route them through Singapore,” Amber Dubey, Partner and Head – Aerospace and Defense, KPMG.
Aviation analysts have welcomed this move and said that the deal affirms India’s reputation as a lucrative aviation market in the long run, despite the short- term problems like excessive taxation.
This new joint venture comes on the heels of the Tata group’s partnership with Malaysian low-cost carrier AirAsia to launch a budget airline by the year-end. However, they are yet to get an NOC. “The biggest challenge before the Tatas will be in the boardroom with the two deals. There is likely to be a conflict of interest. But it is still not clear how the AirAsia-Tata joint venture will unfold,” Dubey added. The new tie-up has triggered speculation about a possible exit of Tata Sons from the deal with Air Asia. But Tata Sons maintains that both tie-ups are very much on.
19/09/13 Business Line
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“With this venture, Singapore Airlines will get a play in the growing international travel from India. SIA can also operate direct flights to Far East and Australia from India or route them through Singapore,” Amber Dubey, Partner and Head – Aerospace and Defense, KPMG.
Aviation analysts have welcomed this move and said that the deal affirms India’s reputation as a lucrative aviation market in the long run, despite the short- term problems like excessive taxation.
This new joint venture comes on the heels of the Tata group’s partnership with Malaysian low-cost carrier AirAsia to launch a budget airline by the year-end. However, they are yet to get an NOC. “The biggest challenge before the Tatas will be in the boardroom with the two deals. There is likely to be a conflict of interest. But it is still not clear how the AirAsia-Tata joint venture will unfold,” Dubey added. The new tie-up has triggered speculation about a possible exit of Tata Sons from the deal with Air Asia. But Tata Sons maintains that both tie-ups are very much on.
19/09/13 Business Line
