HomeBUISNESS NEWSTata plans to merge THESE 4 airlines; Air India, Vistara to become...

Tata plans to merge THESE 4 airlines; Air India, Vistara to become one entity? | Aviation News

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, while there is also an indicative time limit of completing the merger of the Tatas’ whole airline business by 2024. 

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.

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Tatas also took over Air India and Air India Express in January this year. The Tata group in October 2021 emerged as the winning bidder for loss-making Air India. It offered a bid of Rs 18,000 crore, comprising cash payment of Rs 2,700 crore and taking over the carrier’s debt worth Rs 15,300 crore. In January, the Tata group regained ownership of Air India. Apart from this, the Tata Group owns 83.67 per cent ownership in AirAsia India and a holds 51 per cent shares in Vistara.

Since the Tata Group took over Air India in January this year, Tatas have unveiled a comprehensive transformation plan for reviving the loss-making airline. The airline will be inducting five wide-body Boeing and 25 Airbus narrow-body planes over the next 15 months.


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