Tatas Asked To File Details Of Airline Partners

The industry ministry has directed the Tatas to provide corroborative evidence to confirm that the foreign investors who will hold 40% equity stake in their airline venture do not have any direct or indirect connection with foreign airlines.

The ministry has asked the Tatas to report to the administrative ministry and the FIPB the details of foreign investors and the stake proposed to be held by them within eight weeks of receipt of the approval.

While giving conditional clearance to the airline venture, the industry ministry had stated that the company should approach competent administrative authority for specific approval on all activities including acquisition of aircraft, payment of technical fees and foreign training of employees.

 

The Tatas had sought approval from the FIPB to allow investment of up to 40% equity of Rs 278 crore to be invested by foreign investors.

The Tatas had approached the government for approval to establish a scheduled airline in India, approval for purchase of aircraft, spare parts and payment of lease rentals, approval for payment of technical services fees to suitably qualified international organisations specialising in civil aviation activities, approval for foreign training of local employees and approval for the airline to employ expatriate personnel.

The group has clarified in its proposal that the application was in conformity with the existing aviation policy and the company does not propose any direct or indirect equity holding by any foreign airlines. FIPB cleared the proposal and has referred it to the CCFI for final clearance.

The Tatas decided to put in a fresh application after an earlier application to tie up with Singapore Airlines which was also cleared by the FIPB.