SIA renews interest in Indian aviation sector
In response to an email reply to a questionnaire sent to the airline, SIA has said: “We keep all investment options open, but at this point there are no discussions taking place on the purchase of a stake in an Indian airline.”
SIA, along with the Tata Group, had earlier made attempts to enter the Indian aviation market. In the mid-nineties, SIA’s proposal, in partnership with the Tatas, was scuttled in the wake of objection from the civil aviation ministry, following which the Tatas decided to go it alone, but with a technical alliance with SIA.
When even that proposal was not cleared, the Tatas withdrew their plan to start a domestic airline. Another attempt by the Tata-Singapore Airlines combine to buy stake in Air India (the international arm) also failed to materialise.
Apart from SIA, the International Airlines Group (IAG), the parent company of British Airways, has indicated that it too may invest in the Indian market in the future. “India is a key market for IAG and we will monitor the changing regulatory environment but at this stage we have no plans to invest in any Indian airlines,” IAG said in an email reply. IAG has reportedly been in talks with Kingfisher Airlines for a possible equity infusion.
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