Here’s how the Tata group is preparing its merger plan


New Delhi: The Tata Group is ready to begin the process of consolidating all of its airline activities under one umbrella – the Air India brand. The company told a news portal that it has an indicative time frame to conclude the whole process by 2024. The whole process will soon begin with the transfer of its ownership from AirAsia India to Air India, according to the plan being discussed on several levels. within the Tata group, according to a report by The Indian Express.Also Read – Veteran Industrialist Ratan Tata and Two Others Appointed Trustees of PM CARES Fund

The report also suggests that the airline merger should be completed within the next 12 months. Read also – Spicejet: the DGCA extends the 50% cap on the airline’s summer flight schedule until October 29

Once the merger is completed, the Tata Group will look into the Air India-Vistara merger, with Singapore Airlines (SIA), which owns part of Vistara, partnering with the group to become co-owners of Air India. Read also – Air India recruitment: the airline invites applications for cabin crew positions | Details inside

“The transfer process will happen soon, which will make AirAsia India the subsidiary of Air India; soon after, AirAsia will be merged into Air India Express. The process of integrating the two airlines is expected to take at least 12 months from the start date,” The Indian Express quoted a source familiar with the matter as saying.

It should be noted that AirAsia India is currently owned by Tata Sons, which owns the majority of shares in the company.

How many airlines does Tata Group own?

Currently, the Tata Group owns four airlines – Air India and its subsidiary Air India Express, and a majority stake in Vistara and AirAsia India.

Tata Group won a bid to take 100% of Air India by paying Rs 18,000 crore – a substantial part was used to clear the airline’s debt and Rs 2,700 crore was paid to the government of India. Union in October last year. Notably, Air India was transferred by the central government to the Tata Group in January this year.

Apart from Air India, the Tata Group has also acquired Air India Express, a wholly-owned low-cost subsidiary of Air India which operates in the international short-haul space, and a 50% stake in the ground handling company. AISATS stopover.

How Tata Group intends to merge airlines?

Under the Tata Group plan, the consolidation process will begin with the merger of AirAsia India with Air India Express and will be completed within the next 12 months.

After that, the Tata Group will likely consider an option to merge its full-service carrier Vistara with Air India, with the likelihood that Singapore Airlines (SIA) – a financial partner of Vistara – will eventually join forces with the Tata Group to become part of it. . -Air India owners too.

According to reports, the entire transfer process will take place soon, making AirAsia India the subsidiary of Air India. And after that, the process will start merging AirAsia with Air India Express.

Apart from this, the Tata Group is also planning to have an Air India brand with Air India Express as its low-cost subsidiary which will operate in the domestic and international low-cost space.


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