JOIN USTata Sons, Singapore Airlines in talks to merge Vistara with Air India
Tata Sons is reportedly in talks with Singapore Airlines (SIA) to merge their jointly-owned airline Vistara with Air India,
SIA has reportedly asked for time till the end of 2022 to decide on it. The company is looking at the deal’s financial feasibility and Air India’s operations after the divestment, The Indian Express reported citing sources.
Tata Sons is the holding company of the Tata Group, the new owner of Air India after the government sold the full-service carrier earlier this year.
“The Tatas and Singapore Airlines have discussed the merger possibility earlier this year. SIA had even agreed to join the Tata bid for Air India but because of the pandemic, it decided to back out given its poor financial condition,” a source was quoted as saying by IE.
Vistara is a 51:49 joint venture between the Tata Group and SIA. The latter had waived the non-compete clause in Vistara’s contract so Tatas could bid for Air India.
The source told the publication that Air India’s new CEO Campbell Wilson, a Singapore Airlines veteran, is an appointment that indicates a possible merger.
“The two groups sat together and took the call to appoint Wilson at Air India. The decision has been taken with a long-term perspective. Wilson has global aviation experience and comes with longterm commitment to lead Air India’s turnaround,” another source is quoted as saying by the publication.
DH could not independently verify the report
Singapore Airlines CEO Goh Choong Phong said on Thursday, “Campbell is one of our most experienced senior executives who has made many important contributions in key management roles within the SIA Group. While we are sad to lose him, he goes to Air India with our full blessings.” Campbell heads SIA’s low-cost unit Scoot.
The two airlines have similar fleets dominated by Airbus A230 aircraft for domestic and short international flights and Boeing 787 for medium to long international flights. Air India also has a Boeing 777 for US flights.
The Tatas have built Vistara as a premium domestic player, while Air India has key slots in all major international airports.