New Delhi:Tata group on Thursday said it has entered into an agreement with Singapore Airlines to start a full-service carrier in India.

The two parties have signed a Memorandum of Understanding for the airline, which will be based in New Delhi and operate under the full-service model, Tata Sons said in a statement.

“Tata Sons will own 51 per cent and Singapore Airlines will own 49 per cent,” the statement added. The Tatas already have a partnership with AirAsia Bhd to start a low-cost airline in India.

Tata Sons has applied to the Foreign Investment Promotion Board (FIPB) for approval to establish the new airline in India, the company said, adding the initial board will have two members nominated by Tata Sons and one nominated by Singapore Airlines.

“We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India,” Singapore Airlines CEO Goh Choon Phong said.

Details of the airlines branding, management team and products and services will be announced in due course, the company said.