SIA

SIA: An Indian govt has approved a proposal of SIA to establish a full-service airline in the country in partnership with the Tata Group. The proposal was cleared at a meeting of the Foreign Investment Promotion Board. SIA and Tata Sons next will seek approval from the civil aviation ministry to formally create the airline. Recall, SIA is planning an initial US$49m investment to set up Tata SIA Airlines, in a 49/51 JV with Tata Sons . In Sep last year, the Indian government allowed foreign carriers to own stakes of up to 49% in local airlines. Foreign airlines previously were prohibited from owning any stake in an Indian carrier, because the govt feared that foreigners would take over Indian companies. SIA is up 0.7% at $10.44.