Air India: Tata Group’s big planning is going on for its airline business. Tata Sons can now bring all its airlines under the umbrella of Air India. These include Vistara, Air Asia and Air India Express. According to the reports, the process of merging them with Air India has also started. If this planning of Tata Sons is successful, then Air India will become the second largest airline in the country in terms of fleet and market share. At what stage is this planning of Tata Sons, you can take stock of it here.
Tata held talks with Singapore Airlines
Tata has discussed this with Singapore Airlines and it has agreed to merge Vistara with Tata. Singapore Airlines is a partner in Tata Group’s Vistara and after this merger, Tata Singapore Airlines, the company running Vistara, may merge with Air India. According to the report of Economic Times, this news has come.
what will happen after the merger
After this consolidation, a low-cost airline and a full service airline can be formed under Air India. This entire process may take a year to complete. Vistara and Air India can start commercial operation soon. Although Tata Sons and Vistara have not commented about it at the moment.
Singapore Airlines’ stake in Vistara to be reduced
Currently, Singapore Airlines holds 49 per cent stake in Vistara’s parent company Tata Singapore Airlines, but under the merger process, Singapore Airlines’ stake in Vistara will be reduced and it can be brought down to 20-25 per cent. Under this process, there is a plan to include some board members of Vistara on the board of Air India. Tata Sons holds 51 per cent stake in Vistara.
Tata bought Air India this year
Air India was bought by the Tata Group from the government this year and since then new news about the expansion of this airline keep coming out. Recently, the Tata Group merged Air India Express and AirAsia India, for which the Tata group bought the Malaysian airline’s remaining 16 per cent stake in AirAsia India.