Tatas Not To Drop Sia To Obtain Govt Clearance

Tata Industries has categorically stated that it has no intention to drop Singapore Airlines to get the goverments clearance for its proposed Rs 2,400 crore airline project.

It also noted that there were several foreign airlines which held substantial equity in domestic carriers in many countries.

``There is no shame in having an equity tie-up with an efficient airline, Tata Industries Ltd Director Sujit Gupta told reporters here yesterday. ``As of now the question does not arise whether we shall go alone in case the aviation policy does not allow SIA to hold a stake in the new airline, he said.

 

Gupta said there were several foreign airlines which held an equity stake in domestic carriers of other countries. British Airways holds a 25 per cent stake in Australian carrier Quantas and 49.9 per cent in French domestic carrier TAT while Air New Zealand owns 50 per cent in another Australian carrier, Ansett.

Gupta disclosed that Tata Industries Chairman Ratan Tata held a closed-door meeting with civil aviation minister C M Ibrahim last week. ``Both of them had a very good meeting, he said but refused to divulge details of the discussions. All he said was that ``both of them were keen to meet each other to present their points of views.

Gupta clarified that the Tata-SIA venture would be an ``Indian-managed airline and would fully abide by the norms laid out by the director general of civil aviation.

He assured that the new airline would not pose any threat to Indian Airlines, which has a fleet strength of 55 while Tata Airline plans to have a fleet size of only 26 by the year 2001.

``We emphathise with the problems faced by Indian Airlines and we hope to work very well along with the national carrier, he added.