The firm stated that by March 2024, Vistara Airlines and Tata-owned Air India would be amalgamated. Thus, Singapore Airlines, which jointly has a minority stake holding in Vistara with Tata, will still own approximately 25% of the expanded Air India, into which it would inject over 2,000 crore.
As Tata Sons overhauls a massive aviation arm of its business, the restructuring will result in a broader fleet and more destinations operated under the Air India name. Tata now controls 51% of Vistara, with Singapore Airlines holding 49% of the joint venture established in 2013. Since the firm purchased Air India for 18,000 crore due to government disinvestment policy approximately a year ago, the aim has been to combine all of Tata Sons’ aeronautical businesses under the name of Air India.
According to NDTV, For Vistara, the two owners “aim to complete the merger by March 2024, subject to regulatory approvals”, said a Singapore Airlines release. Tata is the owner of the budget airlines Air India Express and AirAsia India, which will combine under the Air India name by 2024. It would bring the total number of aircraft in the fleet to 218 and combine Air India’s 113 with Vistara’s 53 and AirAsia India’s 28.
According to Tata Sons, it will, after that, be the 2nd most significant domestic and international airline in India. As per reports, one of the most significant orders in aviation history, for 300 narrow-body planes supplied gradually, is likely to be placed. Air India plans to quadruple its current fleet of 113 aircraft in the next five years, according to its chief executive officer.
It is a significant milestone in the Tatas’ efforts to revive Air India, a business they started and later nationalised before regaining control when the government thought it would be preferable to sell it off due to mounting losses. According to India Today, “The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline. We are transforming Air India, with the aim of providing a great customer experience, every time, for every customer. As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and on-time performance,” N Chandrasekaran, the chairman of Tata Sons, said in a statement.
“We are excited about the opportunity of creating a strong Air India which would offer both full-service and low-cost service across domestic and international routes,” he added.
According to India Today, “Tata Sons is one of India’s most established and respected names. Our collaboration to set up Vistara in 2013 resulted in a market-leading full-service carrier which has won many global accolades in a short time. With this merger, we have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market. We will work together to support Air India’s transformation program, unlock its significant potential, and restore it to its position as a leading airline on the global stage,” said Goh Choon Phong, the Chief Executive Officer of Singapore Airlines.
