The Tata group intends to merge Air India, AirAsia India and Vistara under one roof. In the case of the last named airline, the consent of the minority shareholder Singapore Airlines is required.
In the previous year, Tata increased its stake in AirAsia India to 83,67 percent. The remaining shares, which are still owned by the AirAsia Group, have a call option that is very likely to be drawn. The background to this is that the Kula Lumpur group of companies wants to withdraw from the Indian branch entirely.
Initial talks about the merger mentioned above are said to have already taken place with Singapore Airlines. Local media reports that these are said to have gone well, but all named airlines and Tata decline any comment on the matter.
Indian newspapers write that Tata is said to have prevailed in the bidding process against Spicejet, but the privatization of Air India is not yet completely dry. In any case, a positive deal with Tata Sons could lead to a fundamental change in Indian aviation. The merger of the three airlines is expected to generate synergies and lower costs. It is still open whether the Air India lowcoster Air India Express will also be merged or continued as a sub-brand.