The Tata Group and Singapore Airlines (SIA) are making a third bid to enter the Indian domestic aviation market. They have signed a memorandum of understanding and applied for Foreign Investment Promotion Board (FIPB) approval to establish a new airline in India. Tata Sons will own 51% and Singapore Airlines 49%.The two would jointly invest $100 million initially to set up the airline with Tata investing $51 million.
The mergers in the aviation sector have been taking a new rise because of the amended sectoral cap in the sector. The sectoral cap becoming 49% could be taken as the major reason for such resulting mergers.