Singapore Airlines (SIA) and Tata Sons (Tata) will merge national carrier Air India and full-service airline Vistara to create India’s leading airline group as SIA eyes accelerating its global growth and multi-hub access in the world’s third-largest aviation sector.
Singapore Airlines will also invest $S250 million (AUD$391 million) in Air India, giving SIA a 25.1 per cent stake in an enlarged Air India group.
The merger will boost SIA’s presence in India, strengthen its multi-hub strategy and allow it to directly participate in the country’s large and fast-growing aviation market.
SIA and Tata aim to complete the merger by March 2024, subject to regulatory approvals.
Vistara, a joint venture between SIA and Tata, commenced operations in January 2015. Tata acquired Air India in January 2022, unveiling a wide-ranging transformation program to strengthen its foundations, revamp operations and position the airline for growth.
“Significant synergies”
The merger of Air India and Vistara would bring significant synergies. Air India has valuable slots and air traffic rights at domestic and international airports that are not available to Vistara.
Vistara is widely recognised as India’s leading full-service carrier, so Air India will benefit from its operational capabilities, customer base, strong service focus and product excellence.
Singapore Airlines CEO Goh Choon Phong said: “Tata Sons is one of the most established and respected names in India. Our collaboration to set up Vistara 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 its position as a leading airline on the global stage.”
Tata Sons Chairman Natarajan Chandrasekaran said: “The merger of Vistara and Air India is an important milestone in our journey to make Air India a truly world-class airline.”
“As part of the transformation, Air India is focusing on growing both its network and fleet, revamping its customer proposition and enhancing safety, reliability and on-time performance.
“We are excited about the opportunity of creating a strong Air India, which would offer both full-service and low-cost services across domestic and international routes.”
To find out more, visit singaporeair.com
