INSUBCONTINENT EXCLUSIVE:
Singapore Airlines (SIA) is engaged in confidential talks with Tata Sons for merging Vistara with Air India, the flagship carrier of the
Republic of Singapore informed the stock exchange in the Southeast Asian nation on Thursday in a first acknowledgement of a possible
explore a potential transaction in relation to the securities of Vistara and Air India
The discussions seek to deepen the existing partnership between SIA and Tatas and may include a potential integration of Vistara and Air
Others include Air India, Air India Express, and AirAsia India.
The Competition Commission of India in June cleared the merger of AirAsia
The National Company Law Tribunal approval, too, would be required for the merger
etc.
Similarly, the Tatas and SIA have initiated a due diligence and valuation exercise as they explore the merger of Vistara with Air
India.
A decision on stakes both sides will own in the merged entity will be done after completion of the exercise.
In 2021-22, Vistara
made a loss of Rs 2,031 crore on a revenue of Rs 5,226 crore
In contrast, Air India posted a loss of Rs 9,556 crore on a revenue of Rs 19,815 crore.
While SIA views India as an important market for
its multi-hub strategy, the Tatas want to make Air India the flagship airline of their aviation business
The group is also aiming for 30 per cent market share for Air India in the domestic market as part of a five-year transformation plan
released last month.
Air India had a market share of 8.4 per cent in August
The plan itself was an indication of merger of all group airlines
AirAsia India and Vistara had a share of 4.6 per cent and 10.4 per cent, respectively.
SIA, however, has cautioned its investors that
There is no certainty or assurance whatsoever that any definitive agreement will be entered into or a potential transaction will materialise
