Singapore International Airlines (SIA) has announced that it is exploring the option of merging Vistara with Air India. SIA owns a 49% equity stake in Tata SIA Airlines, which operates the full-service carrier Vistara. Tata Group owns the remaining 51% stake in Vistara.
“In line with its multi-hub strategy, SIA is currently in confidential discussions with Tata to explore a potential transaction in relation to the securities of Vistara and Air India, a subsidiary of Tata. The discussions seek to deepen the existing partnership between SIA and Tata and may include a potential integration of Vistara and Air India,” SIA stated in the Singapore Stock Exchange.
“The discussions are ongoing, and no definitive terms have been agreed upon between the parties,” SIA said.
SIA took a stake in Vistara in 2013, which gave its presence in India’s fast-growing aviation market. With strong domestic and international traffic flows, India’s aviation market is expected to more than double over the next ten years.
According to DGCA data released in August, full-service carriers Vistara and Air India had a market share of 9.7% and 8.5%, respectively.
Vistara is India’s highest-rated airline on Skytrax and TripAdvisor and recently crossed the milestone of flying 35 million passengers.
Vistara began commercial operations in January 2015 and presently operates a fleet of 41 Airbus A320, five Airbus A321neo, five Boeing 737-800NG and two Boeing 787-9 Dreamliner. The airline is slated to add its third 787 shortly.
Also Read
Air India Aims At 30% Domestic Market Share By 2027