Singapore Airlines and Tata Sons have signed a memorandum of understanding and applied for Foreign Investment Promotion Board approval to establish a new airline in India that will help further stimulate demand for air travel.

Subject to FIPB and other regulatory approvals, the airline will be based in New Delhi and will operate under the full-service model.

Tata Sons will own 51 per cent and Singapore Airlines will own 49 per cent.

The initial Board will have three members, two nominated by Tata Sons and one nominated by Singapore Airlines.

The chairman will be Prasad Menon, nominated by Tata Sons.

“We have always been a strong believer in the growth potential of India’s aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market,” said Singapore Airlines chief executive, Goh Choon Phong.

“Tata Sons is one of the most established and respected names in India. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel.

“We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India.”

Details of the airline’s branding, management team and products and services will be announced in due course.