DGCA Approves Flight Path For Tata-Singapore Airlines

The Directorate General of Civil Aviation (DGCA) has dismissed the objections for granting air operator's permit (AOP) to Tata-Singapore Airlines (Tata-SIA).

The 51:49 joint venture (JV) between Tata Sons and SIA is expected to launch its operations by September or October this year. The JV got go-ahead from the Foreign Investment Promotion Board (FIPB) in October 2013 and was awaiting AOP for launching a full-service carrier.

According to the provision of the aircraft rules, a public notice was issued in May by DGCA, inviting objections/suggestions from public regarding the grant of permit to Tata-SIA.

DGCA said, "A total of six representations were received through email/in writing, which included representations submitted by the Federation of Indian Airlines (FIA) and Jain objecting the grant of AOP."

The objections were raised on issues pertaining to: "FDI is not permitted in greenfield airlines as per the applicable FDI Policy as the said policy was devised to inject funds in the 'existing' cash starved domestic airline companies" and "the substantial ownership and effective control does not vest in Indian nationals which is a fundamental requirement of the Schedule XI of the Aircraft Rules which also raises a grave question in relation to matters of security".

"After the detailed examination of objections/issues raised in the representations, the response of Tata-SIA, and various rules and other provisions for issuance of AOP, I am of the view that the representatives have not been able to make out any case against Tata SIA Airlines Ltd, for refusing to consider its application for the grant of AOP (scheduled)," said the DGCA notice.