Jobaaj Stories
Putting the rumors to rest, Singapore Airlines (SIA), one of the world's most well-known airlines, has confirmed that it is in discussion with the Tata Group for a potential deal that could result in the merger of Vistara and Air India.
"SIA is currently in confidential discussions with Tata to explore a potential transaction in relation to the securities of Vistara and Air India Ltd, a subsidiary of Tata. The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India." Singapore Airlines said in a release.
Tata SIA Airlines Ltd, the parent company of Vistara, is a joint venture between Tata Sons Private Ltd. (the parent company of the Tata Group) and SIA wherein SIA holds 49% while Tata Sons holds 51%. The company began its operations on 9th January 2015 and currently operates a fleet of 50 aircraft and over 220 flights per day.
Mindtree releases q2 results, grows profits by 28%, read more.
In October 2021, Air India, alongside Air India Express and AI SATS, was acquired by the Tata Group using an SPV for Rs 18,000 crores. The airline was officially handed over to Talace Private Ltd., Tata Group's SPV, on 27th January 2022.
Late in September 2022, it was reported that the Tata Group and SIA were considering a merger of the businesses of Vistara and Air India. The same was rebuked by SIA sometime later but was confirmed recently. However, the airline has stated that nothing in the matter is certain.
Air India is currently ranked fourth in India with a market share of 8.5%. Vistara is India's second-largest airline holding a 9.7% market share in the Indian aviation market. However, Indigo is still India's largest airline with a market share of around 57.7%.
The merger of Air India and Vistara could create a fierce competitor in the Indian aviation industry, which would grow to be the third-largest aviation market in the world by 2024, according to certain estimates. Moreover, this merger will also assist with Air India's ambitious 5-year plan to grow its market share to 30%.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
