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

Tay Peck Gek
Published Fri, Nov 18, 2022 · 05:50 AM

AS S : C6L 0%ingapore : C6L 0% Airlines : C6L 0% (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.

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