HomeCURRENT AFFAIRSBUSINESSTata Group: All You Need To Know About its Airline Merger Plans

Tata Group: All You Need To Know About its Airline Merger Plans

Tata Group: The Tata Group is about to start the process of unifying all of its airline operations under the Air India name. The company’s approximate deadline for finishing the procedure is 2024.

The Tata Group owns how many airlines?

The Tata Group currently holds a majority stake in Vistara and AirAsia India in addition to Air India and its subsidiary Air India Express.

Tata successfully bid to acquire 100% of Air India for Rs 18,000 crore; a significant portion of this amount was used to pay down the airline’s debt, and Rs 2,700 crore was given to the Union government in October of last year.

Also Read: YouTube Shorts: Creators Have Some More Ways To Make Money Now. How? Read This

Along with Air India, the group also purchased a 50% stake in ground handling firm AISATS and Air India Express, a completely owned low-cost subsidiary of Air India that operates in the short-haul international market.
With Malaysia-based AirAsia Berhad owning 16.33 percent of the former and Singapore Airlines owning 49% of the latter, the Tata Group owns 83.67 percent of AirAsia India and a majority 51 percent stake in Vistara. The group has made the decision to fully purchase AirAsia India by purchasing out AirAsia Berhad’s interest for $30 million as part of the consolidation of its airline business.

What is the merger strategy for Tata?

The consolidation process is expected to begin with the merging of AirAsia India with Air India Express and will be finished over the course of the following 12 months as part of the strategy that is currently being considered at various levels within the organisation.

Also Read: Inflation: August Recorded A Surge In Retail Inflation For Agricultural And Rural Employees

After that, the group will probably consider the possibility of combining its full-service carrier Vistara with Air India, with a high probability that Singapore Airlines (SIA), an equity partner in Vistara, will eventually form a partnership with the Tata Group to become a part-owner of Air India as well.

Soon, the transfer procedure will be completed, making AirAsia India an Air India subsidiary. The process of combining AirAsia and Air India Express will start shortly after that.

At least 12 months from the start date, the two airlines’ integration process is anticipated to take place.

The Tata Group intends to unify the Air India brand and run Air India Express as its low-cost subsidiary both domestically and internationally.

What will happen with the merging of AirAsia India and Air India Express?

Official sources in the know stated that the merger of Air India Express and AirAsia India will begin with the integration of information technology and the passenger booking system. The Air Asia India system, which is superior in every way, is set to replace the Air India Express system. At various levels, discussions continue over topics like the attire for the cabin staff and branding (expected to be called Air India Express or something similar). Due to the fact that both airlines have different service offerings, staff uniforms, etc., there are complications.

The airline will use the Boeing 737 of Air India Express and the Airbus 320 of AirAsia as part of the strategy.

One of the plans under consideration is to transfer all AirAsia India aircraft to Air India Express.

When will Vistara and Air India combine?

Singapore International Airlines and the Tata Group have a 51:49 joint venture called Vistara. The SIA offer for Air India was sought after by the Tata Group. SIA was ready until Covid-19’s severe financial impact caused it to withdraw.
By 2024, a decision will be made on the merger of Vistara and Air India, and SIA will become a shareholder in Air India. The specifics (such as the form of SIA’s equity, etc.) will only be decided later may be in 2024.

Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOKINSTAGRAM, and TWITTER

Enter Your Email To get daily Newsletter in your inbox

- Advertisement -

Latest Post

Latest News

- Advertisement -