Tata-Singapore airlines gets MHA nod

New Delhi: Tata-Singapore airlines (SIA) joint venture, for full service airline, has cleared yet another hurdle with the home ministry (MHA) granting it security clearance.

MHA did a background check of the three members of this proposed airline's board — chairman Prasad Menon of the Tata group, Tata Sons brand custodian and chief ethics officer Mukund Rajan and SIA EVP (commercial) Mak Swee Wah. They have been cleared to be on the airline's board.

Now, Tata-SIA requires clearances from the aviation ministry and the directorate general of civil aviation — a process that is expected to take some months and be over by the time India gets a new government.

"Tata-SIA (proposal) will take some time. The other Tata JV airline with low cost carrier AirAsia is in the final stages. They may be issued a schedule airline permit (read licence) by as early as next week itself. Their first plane is already in India. They may start operations very soon," said a senior official. The home ministry, for once, has been very prompt in granting security clearance to the two Tata airlines. The Tata-SIA JV envisages starting a Delhi-based full service carrier with an initial investment of $100 million in which the Indian giant will have 51% stake and SIA the rest.

The Foreign Investment Promotion Board (FIPB) had last October cleared this JV. It was the third FDI in airline sector after foreign airlines were allowed to invest in desi ones. The Jet-Etihad deal and then the Tata-AirAsia were cleared before Tata-SIA.