“I don’t understand the logic of working with two airlines simultaneously,” said aerospace journalist Hormuz P. Mama. “It seems peculiar to work with AirAsia and Singapore Airlines as both will compete each other irrespective of low-fare and full-service business models.”
But Mama said India does need a large airline to compete with big international airlines such as Emirates and Deutsche Lufthansa AG.

Consulting firm Capa Centre for Aviation, too, said India needs strong, well-capitalized airlines run by companies with proven credentials.
“Tata-Singapore Airlines venture was long overdue, should have started 15 years back. Capa believes approval of foreign airlines to invest in India was a game-changing decision,” Kapil Kaul, chief executive officer (South Asia) at Capa, said. He cautioned that regulatory and policy uncertainty still dog the aviation sector.
“We have no clarity on the issue of new airline licences. Overall, government policies have always raised entry risks for serious players,” Kaul said. “We operate in a policy and regulatory vacuum. However, Tatas may have discussed this project at the highest levels in the government.”