Tata-SIA partnership can change game play in overcrowded aviation sector

By IVCPOST Staff Reporter

Sep 22, 2013 03:47 AM EDT

It had been six decades ago since the Indian government divested the Tata Group of their majority holding in Air India. This was after the government had nationalized the airline. Earlier this week, Tata Sons announced that the company had been establishing a full service carrier through a partnership with Singapore Airlines.

The combination of the two airline firms totaled an investment valued USD100 million. The move had not only surprised the aviation industry but also evoked tremendous interest.

The partnership displayed a potential to be a major game changer in the industry. The warm response of the combination was only to be expected after Tata Airlines had heralded the birth of civil aviation in 1932 in India. There were also previous attempts to enter the airline business. However, it was foiled by certain vested parties which prompted Ratan Tata, Chairman of the Mumbai based conglomerate, to emphatically state that the Tata Group was no longer interested in forming an airline.

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