
Singapore Airlines (SIA) Ltdis in “confidential talks” with the Tata Group over the potential integration of Vistara, whose 49 per cent equity is held by SIA, and Air India to help the Singaporean carriergain a stronger foothold in India and South Asia.
SIA in a statement further said that the talks were ongoing and no “definitive agreements” have been reached on the potential integration between the two parties.
"In line with its multi-hub strategy, SIA is currently in confidential discussions withTatato explore a potential transaction in relation to the securities of Vistara and Air India Ltd, a subsidiary of Tata (the 'potential transaction').”
"The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India," it said in a statement.
The aviation company said that it will make the necessary announcements “when there are any material developments regarding the potential transaction in compliance with the relevant provisions of the Listing Manual of the Singapore Exchange Securities Trading Limited”.
Earlier this month, Singapore civil aviation authoritiestold WION that they are interested in expanding direct passenger services between the two counties. When asked about the SIA-Air India deal, the official said that it is a "commercial decision".
Singapore Airlines and Scoot, a Singaporean low-cost airline, are restoring their India services to pre-Covid levels. For the next airline season, Air India, Indigo, Go Air and Vistara would be increasing their passenger services to Singapore.
Officials pointed out that during the pre-Covid level, passenger growth was mainly recorded from the secondary cities in India to Singapore.
SIA holds 49 per cent equity in Vistara while the balance 51 per cent equity is held by the Tata Group.
Vistara commenced operations in India on January 9, 2015, and has 50 flights running across the country.The airline's fleet comprises Airbus A320, A320neo, A321neo, Boeing 737 and B787.
The discussions come at a time when Air India has been looking to rebuild its fleet and target a domestic market share of at least 30 per cent over the next five years.
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