Air India-Vistara Merger To Put Singapore Airlines On Front Line Of Indian Aviation Industry

The Singapore Airlines (SIA) Group announced its highest-ever net profit and outlined various strategic initiatives on Tuesday, including the planned merger of Vistara with Air India to enhance the carrier's presence in the Indian market. 

Vistara is a joint venture (JV) between Singapore Airlines and the Tata Group, with a 51 per cent stake held by the latter. SIA reported a net profit of SGD 2,157 million for the FY2022-23 period, a significant improvement from its SGD 962 million net loss a year ago. 

In a release, the airline group stated, "This was mainly driven by better operating performance (+SGD 3,302 million) and lower net finance charges (+SGD 338 million), and partially offset by a tax expense versus a tax credit last year (around SGD 615 million)." 

The group also affirmed its commitment to its longstanding strategy of acquiring and operating new-generation aircraft, despite the challenges posed by the Covid pandemic. In this regard, the group has undertaken several initiatives, including retrofitting its Airbus A380 and Boeing 737-8 fleet, as well as placing orders for the brand-new Airbus A350F freight aircraft. 

The release highlighted that the company had embarked on various strategic endeavours to prepare for the future. These included expanding its network through enhanced collaboration with like-minded airlines, considering the merger of Air India and Vistara to strengthen SIA's position in the rapidly developing Indian aviation market, and Scoot's plan to lease nine Embraer E190-E2 aircraft and extend its operations to secondary destinations in the region. Scoot is SIA's low-cost subsidiary. 

India currently ranks as the world's third-largest aviation market and is one of the fastest-growing markets in the industry. Tata Group announced on 29th November last year the merger of Vistara with Air India, with Singapore Airlines set to acquire a 25.1 per cent stake in the new Air India company.