Singapore - XINHUA
Singapore Airlines and India\'s business conglomerate Tata will set up a new full-service airline in India, the two sides announced on Thursday. Singapore Airlines and the Tata Sons have signed a memorandum of understanding and applied for government approval for the new carrier, they said. The new carrier will be based in New Delhi and operate under the full service model, they said. Tata Sons will own 51 percent of the carrier, and Singapore Airlines 49 percent. Other details such as branding, management team and products and services will be announced later. Prasad Menon, chairman of the proposed new carrier, said Tata believes civil aviation in India has sustainable growth potential. \"We now have the opportunity to launch a world-class full- service airline in India,\" he said. In March, Malaysia-based AirAsia won approval from India\'s foreign investment panel to set up an airline in a joint venture with the Tata group and Telstra Tradeplace. AirAsia has a 49 percent stake, Tata 30 percent and Telstra 21 percent.