In a significant development, Singapore International Airlines and domestic flag carrier Indian Airlines have joined hands to explore the formation of a joint venture for maintenance, repair and overhauling of aircraft, including those of foreign airlines in India.

"We are conducting joint feasibility studies and we have signed an MOU with SIA for this," a top Indian Airlines official told PTI.

What could prove to be a win-win situation for both the airlines, SIA is venturing into India for the first time since it decided to opt out from its partnership with the Tatas for buying Air-India pie.

The possible aircraft maintenance, repair and overhaul joint venture would be formed with SIA Engineering Company, the engineering subsidiary of SIA, which is a global brandname in the MRO business, sources said.

They said the joint venture was expected to take off in early 2004 with IA as the majority stakeholder.

The company is initially expected to offer major overhaul of Airbus A320 and Boeing 737 aircraft at Delhi's Indira Gandhi International Airport and line maintenance for all aircraft types at 10 airports in India.