The decision to establish an MRO center comes soon after the Tata conglomerate signed a deal with Singapore Airlines to launch a full-service airline in India.
Under an agreement unveiled Sept. 19, Tata will own 51% of the new carrier; the Singaporean operator will hold the remaining 49%.
The proposed airline, which currently is seeking approval from India’s Foreign Investment Promotion Board, will be based in New Delhi.
This proposed airline is in addition top Tata Group’s plan to partner with Malaysian low-cost airline AirAsia and Telestra Tradeplace to launch a low-cost Indian airline. This will be the first foreign carrier to enter India’s aviation sector since the government changed its foreign direct investment rules in September of last year to allow foreign carriers to own up to a 49% stake in domestic airlines.
AirAsia India’s operations are expected to begin from Chennai International Airport in southern India by year-end. The Tata Group will hold 30% in the joint venture, while Telestra Tradeplace will have a 21% stake. The remaining 49% will be owned by AirAsia.