NEW DELHI (Reuters) - India's Tata conglomerate and Singapore Airlines
India last year allowed foreign airlines to own up to 49 percent in local carriers in an effort to bolster ailing local airlines.
After the rule change, Malaysia's AirAsia Bhd
"It is Tata Sons' evaluation that civil aviation in India offers sustainable growth potential," Tata Group's Prasad Menon, who will be the chairman of the planned carrier with Singapore Airlines, said in a statement.
Tata Airways was India's largest airline before the government took it over in 1953 as part of its nationalisation drive following India's independence from Great Britain, and was rebranded Air India
In 2000, the Tatas and Singapore Airlines jointly bid for a stake in Indian Airlines, the state carrier that later merged with Air India, although rules preventing foreign airlines from investing in Indian carriers thwarted a deal.
(Reporting by Devidutta Tripathy; Editing by Tony Munroe and Elaine Hardcastle)