To assist the Singaporean airline establish a bigger presence in India and South Asia, Singapore Airlines (SIA) Ltd. is in ‘secret negotiations’ with the Tata Group about the future merging of Vistara and Air India. SIA owns a 49 percent ownership stake in Vistara. In a statement, SIA said that the discussions were still in progress and that no ‘definitive agreements’ about a future merger between the two businesses had been made.
‘In keeping with its multi-hub strategy, SIA is now in private talks with Tata to investigate a potential deal involving the stocks of Vistara and Air India Ltd, a Tata subsidiary (the ‘proposed transaction’). The conversations aim to strengthen the current collaboration between SIA and Tata, and they can involve a prospective integration of Vistara and Air India,’ it said in a statement.
According to the aviation firm, it would comply with the pertinent clauses of the Listing Manual of the Singapore Exchange Securities Trading Limited and make the requisite statements ‘when there are any major changes surrounding the proposed deal’. Singapore’s civil aviation officials informed WION earlier this month that they are interested in increasing direct passenger connections between the two nations. The representative said that the SIA-Air India agreement is a ‘business choice’ when questioned about it.
Singapore Airlines and low-cost carrier Scoot are bringing back their pre-Covid India routes. The number of passengers served by Air India, Indigo, Go Air, and Vistara to Singapore would increase during the next airline season. According to officials, passenger increase from secondary cities in India to Singapore was mostly observed during the pre-Covid level.
The Tata Group owns the remaining 49% of Vistara’s shares, leaving SIA with just 49%. On January 9, 2015, Vistara began operating in India. Currently, there are 50 daily flights. The aircraft used by the airline include the Airbus A320, A320neo, A321neo, Boeing 737, and B787. The talks take place as Air India plans to modernise its fleet and pursues a domestic market share goal of at least 30% over the next five years.
Post Your Comments