With the Tata Group, Singapore Airlines (SIA1) (SINGY) is in discussions about possibly integrating Indian airlines Air India and Vistara.
Tata owns the remaining 51% of Vistara, with SIA owning the remaining 49%. At the beginning of 2022, Tata took over the management of Air India. Since then, there has been conjecture about how the Indian conglomerate plans to restructure its airline operations, which now include Air India, Air India Express, Vistara, and a majority share in AirAsia India.
The national carrier of Singapore characterized the conversations with Tata as private.
“The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India,” SIA said in a stock exchange statement on October 13, 2022.
SIA emphasized that negotiations are still going on and that no final deals or agreements have been reached. Regulatory permission would also be necessary for any transaction.
With the launch of Vistara in 2013, SIA gained access to the Indian market. The company claimed that India is a key component of its multi-hub strategy, providing it with additional sources of traffic to supplement its base in Singapore. According to SIA, traffic in India is expected to treble over the next ten years, and the market is expected to experience rapid expansion.
Analysts have previously predicted that the Indian air transport market, which has room for new or enlarged airlines, might be the growth story of the following ten years.