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21/06/2016
Singapore AirlinesTata joint venture proposal would be a big boost for SIA and AirAsia? | CAPA Centre for Aviation
Singapore AirlinesTata joint venture proposal would
be a big boost for SIA and AirAsia?
20Sep2013
© CAPA
Singapore Airlines (SIA) has taken a major step forward in implementing its
new longterm strategy with the proposed establishment of a joint venture
carrier in India with Indian conglomerate Tata. The SIA Group will have a
49% stake in the new fullservice carrier, giving SIA a major presence in a
strategically important market. Tata will have a majority 51% stake, giving it a
second carrier in its portfolio along with AirAsia India and a twobrand
strategy that follows the formula increasingly used by airline groups
throughout Asia.
For SIA, close involvement and equity in a new airline in India follows the
acquisition of a 19.9% stake in partner Virgin Australia. Australia, India and
China are SIA’s key markets and of strategic interest to the group as it
increases focus on the fastgrowing AsiaPacific region. A partnership with and
potential investment in a Chinese carrier is the only remaining missing major
piece of the puzzle SIA has been working on since Goh Choon Phong took over as CEO at the beginning of 2011.
Mr Goh’s bold new strategy also includes investments in the budget end of the market, again with a focus on the
AsiaPacific region which comes as SIA tries to reduce its reliance on the longhaul passenger and cargo markets.
SIA has recognised the opportunities in faster growing budget end with the launch of Scoot and increased
involvement in Tigerair but also wants to maintain its leading position at the top end of the market, with continued
investment in the SIA premium product and now a new fullservice airline in India.
SIA follows AirAsia and Etihad in taking advantage of India’s new FDI policy...