Government to fast-track Tata-SIA airline

NEW DELHI: Desperate to shrug off charges of inertia, UPA II will fast-track the Tata-Singapore Airlines' proposal to set up a full-service carrier. While top government sources say clearances will be given without any unnecessary delays, the attempt will be to make the proposed airline take off within the remaining tenure of this regime.


The Tata-AirAsia proposal was cleared in about eight months and the Directorate General of Civil Aviation (DGCA) is expected to issue the licence by October-end and it can start flying by December. "If all documents are in place, Tata-SIA proposal will also be given the go-ahead by our government," said a source, admitting an "unnecessary and avoidable" delay in the other aviation FDI of Jet-Etihad.

Sources close to aviation minister Ajit Singh say he is keen to have strong players in India's otherwise cash-strapped airline industry. Also, Tata-SIA and Air India will launch direct flights from India to far-off places and help the airports in metros develop into hubs.





"Past few years have been full of stories about Indian airlines not paying salaries, airport charges, oil bill and other suppliers on time. Three airlines — Kingfisher, MDLR and Paramount — stopped flying. Now, we have deep-pocket players like SIA, Etihad, the Tatas and AirAsia in the Indian aviation sector and things will stabilize within a couple of years," said an official.

The government is upbeat on Tata-SIA and Tata-AirAsia taking wing as these ventures have very strong international airlines as key partners. While budget airline AirAsia India's 21% stakeholder, Arun Bhatia of Telestra Tradeplace, is reportedly upset due to the Tatas tying up with Singapore Airlines to form a full-service airline, the aviation ministry is not perturbed by the Tatas' holding in both the airlines.

"AirAsia is the technical know-how provider and if they get upset it can be a problem for the start-up airline. AirAsia chief Tony Fernandes was aware of the Tatas' talks with SIA. One airline can be Nano and the other JLR of the skies," said a top source.

AirAsia and Singapore Airlines are in direct competition in Southeast Asia. In fact, SIA launched a low-cost long-haul airline called Scoot to take on AirAsia X, the long-haul avatar of the LCC. Tony Fernandes had tweeted when SIA announced the launch of Scoot: "Singapore Airlines to set up a long-haul low-cost carrier. Hahahaha. Deja vu."

While the government has decided to expedite the latest proposal of a full-service airline from the Tatas, it hopes that the stiff competition between AirAsia and SIA does not sour both the proposed start-ups. The DGCA will begin working on AirAsia India's licence as Ajit Singh gave it a no-objection certificate last Friday.