The launch of proposed Tata Sons-Singapore Airlines joint venture (JV) airline will be beneficial for consumers as well as the India's civil aviation industry, a senior government official said.

Speaking on the condition of anonymity, the official said the proposed full service JV airline would provide a much needed boost to competition.

Speaking on the topic, the official said, "It is good that Tatas are setting up a full service airline. It will increase competition, something which the government wants. We are of the view that more players the merrier."

Tata Sons and Singapore Airlines had last week signed a memorandum of understanding (MoU) to set up a new full service JV airline with an initial investment of $100 million.

The JV airline will be called Tata SIA Airlines Ltd. Holding 51 per cent stake, Tata Sons will enjoy substantial ownership & effective control over the JV. Singapore Airlines Ltd will hold the remaining 49 per cent stake in the JV.

Tata Sons already have a JV with Malaysian carrier AirAsia Group and investor Arun Bhatia for a low-cost carrier, which is expected to become operational before the end of this year.