Singapore Airlines (SQ, Singapore Changi) has confirmed it is in confidential discussions with Tata Sons, majority owners of Vistara (Delhi International) and Air India (AI, Delhi International), over a possible deepening of the relationship between the Singapore Airlines Group (SIA) and Tata Sons and which "may include a potential integration of Vistara and Air India."
The SIA Group notes that discussions remain ongoing and no definitive terms have been agreed upon. "There is no certainty or assurance whatsoever that any definitive agreement will be entered into or that the potential transaction will materialise or proceed to completion," SIA Group company secretary Brenton Wu wrote.
The SIA Group holds a 49% stake in TATA SIA Airlines Ltd, as Vistara is legally known, with Tata Sons holding the remaining 51%. Tata Son also recently acquired control of the formerly state-owned Air India. The SIA Group has had along running interest in India's aviation market and views the country as a starting point for its proposed multi-hub strategy which is designed to broaden the airline group's operational focus beyond its Singapore hub.
According to the ch-aviation PRO airlines module, Vistara operates 55 aircraft to 43 destinations in 12 countries, while Air India operates 119 aircraft to 85 destinations in 26 countries.
Wu notes that the SIA Group will make any relevant announcements as appropriate and in line with Singapore Stock Exchnage (SGX) requirements. However, he adds that were any agreement to occur, it would remain subject to approval by the relevant regulatory authorities.
