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Tata Group In Talks With Singapore Airlines About Vistara, Air India Merger

Tata Group and Singapore Airlines are in serious talks about the merger of Air India and Vistara, as per media sources

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Tata Group has started preparations to compete with IndiGo. In this episode, the Tata Group and Singapore Airlines are in serious talks about the merger of Air India and Vistara. It has been told in the media report quoting sources that after the merger of Air India and Vistara, there is a preparation to be brought under a new joint venture.

According to a report published in Live Mint, the Tata Group and Singapore Airlines are reportedly in discussions to merge the businesses of Air India and Vistara Airlines. The joint venture is being discussed with an aim to optimise resources and compete together against the country's top airline IndiGo. The report cited two individuals, who said on conditions of anonymity, that Singapore Airlines may retain a minority stake of up to 25 per cent in the range of Rs 5,000 to Rs 10,000 crore as part of the merger.

At the same time, the completion of the merger may take about a year. According to sources, the joint valuation of Air India and Vistara could be at least Rs 30,000 crore. Singapore Airlines is the current joint venture partner of Tata Sons in Vistara. Discussions are underway between the two JV partners on how to best take advantage of India's future opportunities in aviation. What will emerge as the corporate structure is still being discussed.

It is being told that the purpose of the merger is to challenge IndiGo airline. IndiGo dominates the domestic market and its share in the sky is more than 50 per cent. After the merger, Tata Sons may help strengthen its aviation business balance sheet. However, the question about the brand remains. Spokespersons of Tata Sons and Vistara also declined to comment on the issue. At the same time, a Singapore Airlines spokesperson says that we do not comment on any confidential discussion.

Tags assigned to this article:
singapore airlines tata group air india vistara