Venture with Tata Group competitive collaboration: SIA

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Singapore Airlines (SIA), which is in the process of launching a full service carrier in a 49:51 joint venture with Tata Group, has said its partnership with the latter is a competitive collaboration.

"I think there is some compatibility obviously in the relationship... There is competitive collaboration and adversarial competition," SIA senior vice president for product services Tan Pee Teck said during a recent interaction.

He was responding to a question as to what kind of synergy does the SIA look at its JV partner Tatas which has also invested in no-frill carrier AirAsia India.

Noting that Tatas have seen an opportunity in new areas of business by collaborating with SIA, Teck said, "I think you probably know who our adversaries are in the aviation world. Every one is looking for growth in their businesses."

It may be noted here that domestic airlines body Federation of Indian Airlines (FIA) has bitterly opposed the entry of the new carrier and has moved the Delhi High Court, seeking quashing of approvals being granted to commence its air transport operation.

Teck said Tatas have their own business plans as far as the domestic operations of the proposed airline is concerned and at this stage the SIA on its part was "extending its expertise" to the venture.

The Tata-SIA Airline has submitted its application for the grant of Air Operator's Permit (AOP or flying licence) in April to aviation regulator DGCA. The AOP would enable it to provide scheduled air transport services in the country.

After receiving the application, the DGCA had last month issued a public notice seeking objections, if any, to the grant of flying permit to Tata-SIA.


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