Singapore Airlines and India’s holding conglomerate Tata Sons, have signed a Memorandum of Understanding and applied for Foreign Investment Promotion Board (FIPB) approval to establish a new full-service airline in India to based in New Delhi following regulatory approvals. The two say the creation of the new airline “will help further stimulate demand for air travel” in the country.

Tata Sons will own 51 per cent and Singapore Airlines will own 49 per cent. Details of the airline’s branding, management team and products and services will be announced in due course, the duo said.

“We have always been a strong believer in the growth potential of India’s aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market,” said Singapore Airlines CEO, Goh Choon Phong.

“Tata Sons is one of the most established and respected names in India. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel. We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India.”