SIA Confirms On Vistara-Air India Merger Talks With Tata Group

According to media reports, the situation is still blurry of what stake, if any, SIA would hold if merger of Vistara and Air India happens or if fresh funds would be required to the ail Air India group. The said deal may require the green light from Singapore’s competition watchdog and the authorities in India, according to a media statement

Singapore Airlines confirmed about being in talks with India’s Tata Group over a potential merger of Vistara airline and Air India. There exists a joint venture between the two companies viz Singapore airline and Vistara airline. And Tata Group recently completed 100 per cent acquisition of Air India. 

The confirmation popped in amid media reports that Tata planning to merge it 100 per acquisition with Vistara. Tata holds 51 per cent stake in Vistara, whereas SIA holds 49 per cent.   

According to media reports, the situation is still blurry of what stake, if any, SIA would hold if merger of Vistara and Air India happens or if fresh funds would be required to the ail Air India group. 

The said deal may require the green light from Singapore’s competition watchdog and the authorities in India, according to a media statement.

Back in 2013, when Vistara was established, it gave the SIA group a stake in India’s fast-growing aviation sector. India having prominent domestic and international traffic flows, may witness to more than double over in coming 10 years. 

It can be noted that, along with international and domestic traffic, India will soon become the third-largest aviation market across globe nearly by 2024, as according to the International Air Transport Association

Indian Civil Aviation Minister Jyotiraditya Scindia had said in November 2021 about India becoming the third-largest domestic aviation market in the world. 

Media reports say, the SIA considers the Vistara stake as an integral part of its multi-hub strategy. This will give it access to crucial sources that complement its strong Singapore hub. 

SIA backs Vistara with operational and management expertise at the same time Tata provides the corporate umbrella and domain knowledge in India.  Chief executive of Vistara is a Singaporean, Vinod Kannan. Vinod has been approved from SIA followed by his colleague Leslie Thng, who returned to Singapore and is now CEO of Scoot.