Air India: In Talks With Tata Group For Integration Of Vistara And Air India

Singapore Airlines said on Thursday that it is in secret talks with India's Tata Group. Possible integration of Vistara and Air India is being discussed in this conversation. Singapore Airlines said in a statement issued in this regard that the purpose of this conversation is to further strengthen the existing partnership between Singapore Airlines and Tata Group. However, the Singapore Airlines statement also said that no conclusive decision has been taken in this regard so far.

Let us tell you that Singapore Airlines holds 49 per cent stake in Tata SIA Airlines while Tata Group holds 51 per cent stake in it. Tata SIA Airlines operates an airline named Vistara in India. This company was incorporated in November 2013. Vistara Airlines started its commercial operations from January 2015. The company has a fleet of 50 airplanes. However, no official information has been given by Air India about this conversation so far.

According to a report by The Straits Times, it is unclear what role, if any, SIA would play in the event that Vistara merged with Air India or whether further funding would be required for the struggling Air India company.

Any transaction would require approval from the Indian government's regulators and Singapore's competition authority, according to the SIA statement. The SIA group now has a stake in India's rapidly expanding aviation industry thanks to the establishment of Vistara in 2013.