Singapore Airlines (SIA) chief executive officer Goh Choon Phongh has said it will be a challenge to run a succesful joint venture airline in India.
“By no means do we think that this is going to be a walk in the park. The venture, setting up in India, will have its challenges. We are all familiar with some of the challenges in India. It’s a very competitive market domestically, and as a new start-up the current rule says that one has to operate for five years, and to reach a fleet of 20 aircraft before you’re allowed to go overseas. And we all know how competitive the domestic market is, and therefore it is going to be a highly challenging venture to actually make it work,” SIA’s chief executive officer said on Wednesday in an interaction with analysts.
Last month the Foreign Investment Promotion Board gave its nod for the Tata-SIA airlines. Singapore Airlines will hold 49% stake in the airline and balance 51 will be held by Tata group. An initial investment of $ 100 million will made in launching full service airline with a hub in Delhi.
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