Tata Sons has reportedly begun consolidating all airlines under Air India. The consolidation process will reportedly bring Vistara, AirAsia India and Air India Express all under Air India. According to an Economic Times report, Tata Sons has initiated the process after several rounds of negotiations with Singapore Airlines (SIA). According to the report, if the process goes as planned, Air India could become the second largest airline in the country, especially in terms of fleet and market share.
With this merger, Tata Sons will have a low-cost carrier and a full-service carrier under Air India. After the merger, it will be the only airline brand within the group, according to reports. To make all of this official, the report adds that an announcement is expected within a week. The two airlines are set to begin commercial cooperation soon, but it is reported that it could take more than a year to properly function as a single entity under the umbrella. The report also added that the Vistara brand could be phased out and SIA is expected to become a minority shareholder in Air India, with some of the former’s directors expected to join Air India.
These updates come on the heels of Tata also completing the integration process of Air India Express and AirAsia India earlier this month. This will be completed after the company purchases the latter’s remaining stake, and ET reports expect the merger process to be completed within the next year. According to the latest update, the Tata Sons owned his 51% stake in Vistara.