- Thursday, March 06, 2025
By: Shubham Ghosh
India’s Tata Group is considering a plan to integrate its four airline brands under Air India Limited, Bloomberg reported citing informed sources.
The large conglomerate is also mulling scrapping the Vistara brand — Singapore Airline Limited’s official affiliate in India, the sources added on the condition of anonymity, the report added.
One of them also said that Singapore Airlines (SIA) is currently evaluating the size of stake it should take in the combined entity.
While representatives for the Tata Group, Air India, and Vistara did not respond to requests for remarks, Bloomberg said, Singapore Airlines said in a statement that “discussions are ongoing between SIA and Tata” and that it had nothing more to add beyond an October 13 exchange which said the talks “seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India”.
Air India is eyeing a revamp under Tata, its new owner, and the carrier is considering ordering 300 narrow-body jets, the Bloomberg report said.
Air India chief executive Campbell Wilson said in October that the airline is set to triple its fleet of 113 aircraft over a period of five years, with a “significant” increase in narrow and wide-body aircraft.
Tata became the winning bidder for Air India in October 2021 after pipping rival suitors with a $2.4 billion (£2 billion) offer. The episode became India’s most high-profile privatisation under prime minister Narendra Modi.
It also meant Tata had four airline brands — Air India and other full-service carrier Vistara, along with Air India Express Ltd. and AirAsia India, both budget carriers.
Earlier in November, Air India said it is acquiring AirAsia’s local venture and merging it with Air India Express into a single low-cost air transporter.
That consolidation is likely to take place by the end of next year.
