Digital Desk: Vistara Airlines stated today that it will combine with Tata-owned Air
India by March 2024. Singapore Airlines, which owns a minority stake in Vistara
through its joint venture with Tata, would own approximately 25% of the
enlarged Air India, into which it will invest more than 2,000 crore.
As Tata Sons rebuilds its empire's huge aviation
wing, the restructuring will result in a larger fleet and additional routes
under the Air India name. Tata now controls 51% of Vistara, with Singapore
Airlines owning the remaining 49% in the joint venture
Since Tata purchased Air
India for 18,000 crore as part of a government disinvestment roughly a year
ago, the company's objective has been to consolidate all of its aviation brands
under one name.
According to a Singapore
Airlines release, the two owners of Vistara "hope to finalise the merger
by March 2024, subject to regulatory approvals." Tata also controls the
low-cost carriers Air India Express and AirAsia India, which will also be
united under the Air India brand by 2024.
This brings the total fleet
size to 218, including Air India's 113, AirAsia India's 28, Vistara's 53, and
Air India Express's 24. Tata Sons stated that it will thereafter be India's
largest international carrier and second largest local carrier.
According to reports, it
is also planning to order 300 narrow-body jets, one of the largest orders in
aviation history, to be delivered gradually. Air India's CEO stated that the
company's 113-plane fleet will be tripled in the next five years.
This is a significant
step toward the Tatas resurrecting Air India, a corporation formed by the
family-run group but then nationalised, only to return to Tata Sons as losses
mounted and the government thought it was best to sell it off.
"As part of the
change, Air India is focusing on extending both its network and fleet,
overhauling its customer proposition, enhancing safety, reliability, and
on-time performance," Tata Sons chairperson N Chandrasekaran was quoted as
saying in a press announcement.
Singapore Airlines' chief executive, Goh Choon Phong, stated, "Our
collaboration in establishing Vistara in 2013 resulted in a market-leading
full-service carrier that has received numerous global plaudits in a short
period of time. With this combination, we will be able to strengthen our
partnership with Tata and directly engage in an exciting new growth phase in
India's aviation business."
Leave A Comment