Singapore Airlines could be offered a stake in the Air India-Vistara merger

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  • Singapore Airlines Airbus A350-941 (2)
    Airlines to Singapore

    IATA/ICAO code:
    SQ/AIS

    Airline type:
    Full service carrier

    Hub(s):
    Singapore Changi Airport

    Year of foundation:
    1972

    Alliance:
    star alliance

    CEO:
    Goh Chun Phong

    Country:
    Singapore
  • Tom Boon-200
    Air India

    IATA/ICAO code:
    AI/AIC

    Airline type:
    Full service carrier

    Hub(s):
    Delhi Indira Gandhi International Airport

    Year of foundation:
    1946

    Alliance:
    star alliance

    CEO:
    Campbell Wilson

    Country:
    India

The Tata group could offer a stake to Singapore Airlines (SIA) in Air India’s merger with Vistara. SIA owns just under half of full-service carrier Vistara and as such will have a say in any project involving the merger.


Participation in the Air India-Vistara merger

As part of the Air India-Vistara merger negotiations, Singapore Airlines could be offered a stake by the Tata group. According to a report by The Economic Times, senior executives in the know said SIA had agreed “in principle” to Vistara partnering with Air India, and more specific details are being discussed.

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SIA could be offered a stake in the Air India-Vistara merger. Photo: Vistara

SIA has partnered with the Tata Group and owns 49% of Vistara to tap into the growing domestic market in India. However, with the Tatas’ acquisition of Air India and subsequent merger plans to consolidate the business, SIA has had to look at the business in a new light to see how the changes affect its original plan.

Discussions about

Earlier this year, Singapore Airlines had asked the Tatas to wait for some time before making decisions on the merger. The Tatas and SIA discussed these possibilities, and SIA reportedly even agreed to join Tata’s bid for Air India but, due to the pandemic, decided to pull out.

SIA is said to be warming to the idea of ​​an AI-Vistara merger. Photo: Getty Images

Now, the ET report reveals that SIA is warming to the idea, but is unlikely to commit significant funds to Air India again. SIA said nothing about this, stating that they “do not comment on any confidential discussions we may or may not have with our partners.”

In June, it was reported that the Competition and Consumer Commission of Singapore (CCCS) was also reviewing the deal to see if it breached national competition law. Clearly, all angles will be considered before any decision on the merger is finalized.

bring them together

Following the acquisition of Air India and Air India Express, the Tata found themselves in possession of four airlines – the other two being Vistara and AirAsia India. Tata Sons chairman Chandrasekaran is keen to bring carriers together to improve efficiency and margins and get a bigger share of the Indian market.

Recent reports suggest that the consolidation process will likely begin with the merger of AirAsia India with Air India Express and will be completed within the next 12 months.

The Tatas are keen to consolidate their air activity. Photo: Akshay Mantri

After that, the group will focus on merging Vistara with Air India, with the likelihood of Singapore Airlines eventually joining forces with the Tata Group to become part owners of Air India as well.

Sources told The Indian Express that the merger of Air India Express and AirAsia India will start with the integration of information technology and passenger reservation systems. The Air India Express system will probably be moved to AirAsia India’s system which would be better in every way. Issues such as cabin crew attire and branding are always discussed at different levels.

Over time we’ll likely get more details on the Tata Group’s plans, but it clearly seems like they have their hands full for the whole year.

What is your opinion on that? Please leave a comment below.

Source: The Economic Times, The Indian Express

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