SINGAPORE Airlines (SIA) has received the official go-ahead from India's Foreign Investment Promotion Board (FIPB) to set up a joint-venture airline in the country together with Tata Sons.

In a release to the Singapore Exchange yesterday, SIA said that it received approval from the FIPB on Nov 22. The FIPB had initially given its verbal approval in October. SIA will now need to seek further approvals, such as a no-objection certificate from India's Ministry of Civil Aviation and a scheduled air operator's permit from the Directorate General of Civil Aviation.

Tata will have a 51 per cent stake in the New Delhi-based airline, while SIA will hold 49 per cent. Both SIA and Tata will invest a total of US$100 million in the full-service carrier, with SIA putting in US$49 million.