Singapore Airlines (SIA) Is In Confidential Talks With Tata Sons To Merge Vistara With Air India
The Republic Of Singapore’s Flagship Carrier Told The Southeast Asian Nation’s Stock Exchange On Thurs
Singapore Airlines (SIA) is in confidential talks with Tata Sons to merge Vistara with Air India, the Republic of Singapore’s flagship carrier told the Southeast Asian nation’s stock exchange on Thursday in a first acknowledgment of a potential integration of both. airlines.
“In line with its multi-hub strategy, SIA is currently in confidential discussions with the Tatas to explore a potential transaction in relation to the Vistara and Air India securities.
The discussions seek to deepen the existing partnership between SIA and Tatas and may include a potential integration of Vistara and Air India,” SIA said in a notice to the Singapore Stock Exchange.
SIA owns a 49 percent stake in Vistara and is among the four airlines managed by the Tata Group. Others include Air India, Air India Express and AirAsia India.
graphic
India’s Competition Commission cleared AirAsia India’s merger with Air India in June. The approval of the National Court of Company Law would also be required for the merger.
Currently, the executives of both airlines are discussing the adjustment of various aspects related to the integration: products, services, etc.
Similarly, Tatas and SIA have launched a due diligence and valuation exercise as they explore Vistara’s merger with Air India.
A decision will be made on the shares that both parties will have in the merged entity after completing the exercise.
In 2021-22, Vistara had a loss of Rs 2,031 crore on revenue of Rs 5,226 crore. By contrast, Air India posted a loss of Rs 9,556 crore on revenue of Rs 19,815 crore.
While SIA sees India as an important market for its multi-hub strategy, the Tatas want to make Air India the flagship carrier for their aviation business.
The group is also targeting a 30 percent market share for Air India in the domestic market as part of a five-year transformation plan launched last month.
Are you an
Entrepreneur or Startup? Do you have a Success Story to Share? SugerMint would like to share your success story. We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
|
Read more Business News at SugerMint. Follow us on Twitter, Instagram, Facebook, LinkedIn