SIA, Tata in talks to potentially integrate Vistara and Air India
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Yong Jun Yuan
FLAG carrier Singapore Airlines (SIA) said that it is currently in confidential discussions with Tata Group to explore a potential transaction relating to securities of Vistara and Air India, a subsidiary of Tata.
“The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India,” the company said in a bourse filing on Thursday (Oct 13).
SIA currently holds a 49 per cent equity interest in Tata SIA Airlines which operates Vistara, an Indian full-service airline based in New Delhi. Tata holds the remaining 51 per cent stake.
SIA said that discussions are ongoing and no definitive terms have been agreed upon yet. It added that even if a transaction were to materialise, it would be subject to relevant regulatory approvals, among other matters.
It also said that the establishment of Vistara in 2013 gave SIA Group a stake in India’s growing aviation sector, with domestic and international travel flows expected to more than double over the next 10 years.
“This is an integral part of the SIA Group’s multi-hub strategy, allowing it to get access to important sources that complement its strong Singapore hub,” SIA added.
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SIA shares closed flat at S$5.03 on Thursday, before the announcement was made.
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