Air India (AI, Delhi International) owner Tata Sons has held talks with Singapore Airlines (SQ, Singapore Changi), its joint-venture partner in Vistara (Delhi International), to discuss the possibility of a merger of the two full-service carriers, “multiple sources” have told The Indian Express newspaper.
The Singaporean carrier is understood to have asked for a period until the end of 2023 to come to a conclusion as to whether it would permit such a move, the sources divulged on May 16.
Vistara is a 51/49 venture between the Indian conglomerate and Singapore Airlines, while Tata bought a 100% shareholding in state-run Air India in January through its Talace Private Limited vehicle. The two airlines are the sprawling country’s only full-service carriers at present.
“The Tatas and Singapore Airlines discussed the merger possibility earlier this year. SIA had even agreed to join the Tata bid for Air India, but because of the pandemic it decided to back out given its poor financial condition,” one of the sources close to the matter revealed on condition of anonymity.
Singapore Airlines had waived a non-compete clause in Vistara’s joint venture contract to allow Tata Sons to bid for the flag carrier.
Tata Sons has also asked for antitrust approval to merge another of its airlines, AirAsia India (Bengaluru International), into Air India, the Press Trust of India news agency reported in April. Local media have speculated it is most likely to merge AirAsia India into Air India Express (IX, Delhi International), which the group acquired together with Air India.
Air India and Vistara did not immediately respond to ch-aviation’s request for comment, while a Singapore Airlines spokesperson said: “We do not comment on any confidential discussions that we may or may not be having with our partners.”
According to the ch-aviation fleets module, Vistara currently operates a fleet of 51 aircraft with a further 26 to be delivered. It operates three A320-200s, thirty-six A320-200Ns, four A321-200NXs, five B737-800s, and two B787-9s. All are leased except three of the A320neo. The 26 to be delivered comprise twenty-one more A320neo, one extra A321-200NX, and four more B787-9s.
Air India currently operates 120 aircraft, namely twenty-one A319-100s, nine A320-200s, twenty-seven A320-200Ns, twenty A321-200s, three B777-200(LR)s, thirteen B777-300(ER)s, and twenty-seven B787-8s.
In related news, Tata Sons announced on May 12 that it would appoint Campbell Wilson, currently head of Singapore Airlines budget carrier Scoot (TR, Singapore Changi), as its next chief executive, subject to regulatory approvals. New Zealand-born Wilson, 50, will depart from his current role on June 15. He will be replaced at Scoot by Leslie Thng, 47, who once headed Vistara and is now senior vice president of sales and marketing at Singapore Airlines.
