Vistara-Air India merger won’t yield instant profits but could benefit SIA in the long haul: analysts

AS S INGAPORE Airlines (SIA) engages Tata Group over the potential merger of their joint venture – Indian carrier Vistara with Tata-controlled Air India – analysts are mixed about the prospects for any expansion in India.

A larger presence in India would give SIA a presence in a growing market with greater domestic revenue opportunity, but India has a highly competitive aviation scene that historically has not been very profitable.

The pandemic has taught SIA the significance of a domestic market, said DBS equity analyst Jason Sum.