NewDelhi: The Tata Group is considering to integrate its four airline brands including Air India, Vistara, Air India Express and AirAsia India – under Air India Ltd. As per a Bloomberg report, the Tata group is planning to scrap the Vistara brand, which is a Tata-SIA joint venture. The report stated that Singapore Airlines is evaluating the size of the stake it should take in the combined entity. The merger process will likely begin with the transfer of its ownership in AirAsia India to Air India soon, consolidation of these two airlines, both of which operate as low-cost carriers, will be undertaken as part of the restructuring roadmap that is being envisioned for the Tata Group’s airline business.
The merger is likely to be completed within the next 12 months. After this merger is completed, the Tata Group may look into a Air India-Vistara merger, with Singapore Airlines (SIA), which owns a part of Vistara, partnering with the group to become part owners of Air India.
A few days ago, Air India announced to fully acquire budget Airline Air Asia India. The Indian airline said that it has signed agreements to complete the acquisition of 100 percent shareholding in AirAsia India and to subsidiarise it under Air India. Earlier, Campbell Wilson, CEO and MD, Air India, said, “We are excited to initiate the creation of a single Air India Group low-cost carrier. This is a key step in the rationalisation and transformation of the Group, and we will be working closely with the management teams and staff throughout the process. We also look forward to the many new opportunities a stronger AI Group low-cost carrier will bring for customers and staff alike.”
Tatas also took over Air India and Air India Express in January this year. Since the ‘Gharwapsi’ of Air India in January this year, Tatas’ have unveiled a comprehensive transformation plan in order to revive the loss-making airline. The airline will be inducting five wide-body Boeing and 25 Airbus narrow-body planes within the next 15 months.
Bureau Report
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