Indian industrial conglomerate Tata Sons and Singapore Airlines plan to jointly launch a new full service airline in India.
The Tata Group will have a 51 percent stake in the new airline with Singapore Airlines owning the remaining 49 percent.
The Tatas are also launching a low-cost carrier in India in a similar partnership with another Southeast Asian carrier, AirAsia X.
An earlier attempt by the Tata Group to launch an airline in the late 1990s failed due to regulatory and administrative hurdles.
The Indian government recently relaxed its rules and allows foreign ownership of up to 49 percent in Indian airlines, paving the way for airline joint ventures with overseas partners.
In May, major Gulf-based airline Etihad announced the purchase of a 24 percent stake in Jet Airways, the largest Indian full service carrier.