Tata Sons have signed an agreement with Singapore Airlines and applied for necessary regulatory approval to set up a new airline in India, the two companies said in a joint statement.
"Subject to the Foreign Investment Promotion Board (FIPB) and other regulatory approvals, the airline will be based in New Delhi and will operate under the full-service model," the statement said.
Tata Sons will control the majority stake.
"Tata Sons will own 51 percent and Singapore Airlines will own 49 per cent," the statement added. The Tatas already have a partnership with AirAsia Berhad to start a low-cost airline in India.
The Chairman will be Prasad Menon, who has been nominated by Tata Sons.
"It is Tata Sons' evaluation that civil aviation in India offers sustainable growth potential. We now have the opportunity to launch a world-class, full-service airline in India. We are delighted that we are partnering in this endeavour with the world renowned Singapore Airlines," Menon said.
Expressing similar views, Singapore Airlines CEO Goh Choon Phong said: "We have always been a strong believer in the growth potential of India's aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market."
With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel, he added.
"We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India," Goh said.
Details of the airline's branding, management team and products and services will be announced in due course, the company said.