Tata group is planning to merge its airline brands under Air India Ltd. Sources say that this plan comes out of TA’s bid to streamline its business in the airline category. This means Air India and Vistara might be merging into one. The merger will be a big announcement and will help the Indian conglomerate rebuild its presently faltering airline business.
Air India And Vistara Merger
While India’s largest conglomerate is thinking about merging its four brands, there is news that Air India and Vistara will also be merged soon. Vistara is South Asian nation Singapore Airlines’ local affiliate. According to the sources, Singapore Airlines is yet to agree, as they are looking at the size of the stake in the combined entity.
Air India, which is now owned by the Tata group, will soon go through a revamping process. The Indian carrier is said to be ordering 300 narrow jets soon. This transaction is surely going to be the largest in the commercial history of the aviation industry. Campbell Wilson, Chief Executive at Air India, said that over the next five years, the airline is going to expand its fleet three times.
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Also Read: Vistara To Start Flights Between Mumbai & Muscat From December 12
The Revamping Process
The fleet of Air India will see an increase in wide-body and narrow aircraft. Starting in December, the airline is planning to introduce 25 Airbus SE and 5 Boeing Co. aircraft. It is also trying to raise $1 billion in a funding round, which in turn will value the carrier at $5 billion.
In October 2021, Tata Group was the winning bidder for Air India. Its offer of $2.4 billion beat all the other suitors, leading it to victory. This winning bid was considered to be the highest in the history of privatisation in India under Prime Minister Narendra Modi. The bid offloaded the money-losing airline after decades.
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Also Read: Alliance Air Will Soon Launch Flights From India To These Neighbouring Countries
Let us know your views on this merger below.
News Source: Live Mint
Cover Image Courtesy: @airindia/Instagram & @vistara/Instagram