Tatas mull merging all airline brands under Air India, may scrap Vistara

The Tata Group was considering a plan to integrate its four airline brands under Air India, reported the Bloomberg on Thursday, citing people with knowledge of the matter. India’s largest conglomerate was also considering scrapping the Vistara brand, which is Singapore Airlines’s India affiliate, the report further added. 

On October 13, Singapore Airlines had said in a release that it was in “confidential discussions” with the Tata Group concerning the securities of Vistara and Air India, including a “potential integration” of the two airlines. 

The integration of all Tata Group airlines under the Air India brand will create an entity with nearly 200 aircraft and more than 800 domestic and international departures. This would make it the country’s second-largest airline after IndiGo. Air India is also expected to announce one of the largest aircraft orders in recent times which would lead to an almost threefold increase in its fleet size. 

Air India CEO and MD Campbell Wilson had last month said that the airline aimed to have a 30 per cent share in both domestic and international markets in the next five years. 

Months after taking over, Tata Group had come out with a revival plan, Vihaan.AI, for the loss-making carrier. According to Mr Wilson, the airline will triple its fleet in the next five years. 


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