Jobaaj Stories
Singapore Airlines (SIA) has finally announced the merger of Vistara with Tata-owned Air India.
We at Jobaaj spoke about how the company was in discussion with Air India for a potential merger early in October this year. For the unversed, Vistara is managed by Tata SIA Airlines, a JV between Tata Sons and SIA, holding 51% and 49% respectively.
However, after the merger is completed in March 2024, SIA will be owning 25.1% of the strengthened Air India in which it will be infusing Rs 2,059 crores. This is part of the Tata Group's bid to merge all its airlines into one mega aviation brand. Air India Express and AirAsia India will also be merged into Air India.
"As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance," Tata Sons chairperson N Chandrasekaran said.
This merger will bring the company's entire fleet size up to 218 aircraft, making it India's largest international carrier and second-largest domestic carrier. Moreover, this merger will assist Air India to achieve its goal of 30% market share in domestic flights faster.
"Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier, which has won many global accolades in a short time. With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India's aviation market," said Goh Choon Phong, CEO of Singapore Airlines.
Article by Aman Agarwal. '
