Hinting at a potential integration of commercial airlines Vistara and Air India, Singapore Airlines has confirmed that it is holding discussions with Tata Sons for the merger.
Singapore Airlines in a statement said that discussions with Tatas are ongoing and no definitive terms have been agreed upon between the parties.
According to reports, Tatas has a 51 per cent stake in Vistara and the rest is with Singapore Airlines (SIA). Tatas are also the owner of Air India and can invite another airline to buy a stake in the former national carrier, provided they hold a majority 51 per cent share.
The merger, which could take a year to complete, is part of a bigger consolidation drive by Tata Sons to save costs, create synergies by optimising aircraft utilisation and routes and increase market share to compete with IndiGo, India’s largest airline with a market share of 59 per cent.