Singapore Airlines and the Tata Group are in talks to merge Vistara & Air India

Singapore Airlines and the Tata Group have entered into talks about a possible merger of Filara and Air India. Citing a statement from Singapore Airlines, the news agency said on Thursday it had started secret talks with the Tata group to reach an agreement.

Discussions have begun with a view to strengthening existing cooperation between Singapore Airlines and the Tatas, and possibly a possible merger between Vihara and Air India, said Singapore Airlines in a statement. According to experts, Singapore Airlines is interested in acquiring Air India’s shares to increase its share of the international passenger market. In that case, in the event of a merger of Air India, part of Air India will be acquired by Singapore Airlines. Singapore Airlines said today that discussions are ongoing and that no final agreement has yet been reached on the terms of the merger.

Singapore Airlines has a 49 percent stake in Tata SIA Airlines, Vilar’s parent company. The remaining 51 percent is owned by the Tata group. On the other hand, Air India has been owned by the Tatras since last January. However, there was no response from Air India to the discussion about the possible merger of Bifrah-Air India.

However, much of the civil aviation experts believe that if the Air India and Bishlar merger happens, IndiGo and many airlines in the Middle East will have a good night’s sleep. Currently, a large number of travelers from India fly to and from abroad with Middle Eastern airlines such as IndiGo, Emirates, Etihad. Many of these passengers can opt for the combined airline through IndiGo, Emirates as Air India and Filhra merge.

Singapore Airlines has said the number of domestic and international passengers in India will double in the next decade. The airline’s current owner is the Tata group after completing the process of acquiring Air India from the central government last January.

However, Singapore Airlines did not participate in the auction held by the Center to sell Air India. At that time, they prioritized strengthening their balance sheet. But Singapore Airlines later changed its plans. And meanwhile, in July, Campbell Wilson, the former head of Singapore Airlines, took over as CEO of Air India.

Meanwhile, the Tata Group has taken a series of steps to restore the glory and reputation of Air India, which has suffered financial losses for many years. One is building a new air force. Air India aims to capture a 30 percent market share of the Indian domestic air passenger market in the next five years. In North America, they are launching more flights and Air India flights using Russian airspace take less time to reach a North American destination. All of Air India’s competing airlines have been avoiding Russian airspace since Russia invaded Ukraine in February.

Brendan Sobey, a Singaporean civil aviation expert, told the news agency: “It would make a lot of sense if Singapore Airlines turned their interests in Bilasha into a Tata-led airline group. The formation of this group would strengthen the position of all airlines.” owned by Tata, as they are today.”

However, Sukar Yusof, head of civil aviation consultancy Ndow Analytics, said Singapore Airlines’ M&A past is not good. They had a 20% stake in Virgin Australia. That partnership collapsed after Virgin Australia took office in 2020. In 2012, Virgin Atlantic sold its 49% stake in Singapore Airlines to Delta Air Lines for less than its purchase price. Yusuf said their alliance with the Tatas is only doing well in terms of expansion.

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