Tata Group accused of being unethical over its deal with Singapore Airlines

Tata Group accused of being unethical over its deal with Singapore Airlines Tata Group’s AirAsia India joint venture partners have accused the Tatas of being unethical and keeping them in the dark by silently hitting an agreement with Singapore International Airlines for creating another airline joint venture.

On Thursday, Tata Sons and Singapore Airlineson announced their plans to create a full-service domestic airline joint venture. The new JV will be creted with an initial investment of $100 million.

Arun Bhatia, who owns 21 per cent stake in the proposed AirAsia India trough his Telestra Tradeplace, criticised the Tata Group for signing the JV deal with Singapore Airlines.

Speaking on the topic, Bhatia said, “I was shocked to hear about Tata Sons’ new JV with Singapore Airlines. Tatas should have informed me also. They kept me in the dark. It is unethical on their part.”

Bhatia added that he would not exit the proposed AirAsia India airline JV and that he was ready to acquire Tata Sons’ stake, if it wass put on sale.

In the proposed Tata-Singapore International Airlines JV, Tata Sons will invest $51 million, while Singapore Airlines will invest $49 million. Likewise, Tata Sons will own 51 per cent stake, while Singapore Airlines will own 49 per cent stake in the proposed JV.