highlights
It may take more than 1 year to bring under one banner.
There are reports that the Vistara brand may be dropped.
As of the last available information, Tata Sons held 51% stake in Vistara.
New Delhi. It is reported that Tata Sons has started the process of bringing all its airlines – Vistara, AirAsia India and Air India Express under one fund of Air India. The move is expected to be announced by the company within a week. After this merger, Tata Sons will have a low-cost carrier and a full-service airline under Air India. It is being said that it may take more than 1 year to bring them completely under one banner.
According to a report in the Economic Times, the process was initiated after several rounds of discussions with Singapore Airlines (SIA). Add to this the fact that post execution, if everything goes according to plan, Air India could become the second largest airline in the country in terms of market share and fleet.
Vistara brand can be removed
It has also been said in the report that the Vistara brand can be removed. Singapore Airlines is expected to be a minority shareholder in Air India. Some of the earlier board members are expected to join the board of Air India.
Tata Sons had earlier completed the consolidation process of Air India Express and AirAsia India after the company bought the stake. Tata Sons held 51 per cent stake in Vistara as of the last available information.
Recently, AirAsia Aviation Group Limited (formerly known as AirAsia Investment Limited (AAAGL)) said that it has sold the remaining 16.33 per cent stake in AirAsia India (AAI) to Air India Limited.
What will happen after the transaction is completed?
AirAsia Aviation Group said, “Upon completion of the transaction, AAAGL will cease to have any equity interest in AAI, and the brand license and technical services agreement between AirAsia Berhad and AAI shall be terminated 12 from the date of expiry of the shareholders’ agreement between the parties.” month or earlier, if so informed by AAI.”
Tata acquired Air India and Air India Express in January. In October 2021, Tata emerged as the winning bidder for the loss-making Air India. It offered a bid of Rs 18,000 crore, which includes a cash payment of Rs 2,700 crore and the carrier’s debt of Rs 15,300 crore.
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Tags: air india, Air India employees, Airlines, Airlines, airline news, airlines, business news, Tata
FIRST PUBLISHED : November 14, 2022, 18:03 IST
