Page 9 - AAA NOVEMBER - DECEMBER 2022 Online Magazine

BIGGER AND BETTER

© Vistara

UNDER NEW OWNERSHIP, AIR INDIA HAS said that they aim to complete the merger by
MOVED RAPIDLY TO CONSOLIDATE ITS March 2024, subject to regulatory approvals.
AIRLINE OPERATIONS Natarajan Chandrasekaran, Chairman, Tata
Sons, said ““We are excited with the opportu-
ATUL CHANDRA nity of creating a strong Air India which would
offer both full-service and low-cost services
Air India has moved rapidly since being acquired by Tata Sons across domestic and international routes.
(Tata) to consolidate the formerly state-owned carrier’s airline We would like to thank Singapore Airlines
operations, by acquiring Air Asia India and Vistara. The incor- for their continued partnership.” He added
poration of Vistara and Air Asia India, will give Air India access that as part of its transformation, Air India
to their network and additional aircraft providing it with much was focusing on growing both its network and
needed economies of scale to compete in India’s highly com- fleet and revamping its customer proposition,
petitive aviation sector. Tata now wholly owns Air India, which in addition to enhancing safety, reliability, and
includes the low-cost carriers Air India Express and AirAsia India on-time performance.

Since its acquisition by Tata in January 2022, Air India has Vistara is a joint venture of Tata and SIA,
announced a slew of measures aimed at consolidation of its air- wherein the former held a 51 per cent stake
line operations and creating the necessary conditions for future in partnership and the latter owned 49 per
growth. In September, Air India announced a comprehensive cent stake. Vistara began operations in
transformation plan, titled “Vihaan.AI” which would establish it, January 2015 and today has a fleet of 54
once again, as a world-class global airline. Under Vihaan.AI. Over aircraft including 41 Airbus A320, 5 Boeing
the next five years, Air India plans to grow its market share to at 737-800NG, 5 Airbus A321neo and 3 Boeing
least 30 per cent in the domestic market, in addition to increasing B787-9 Dreamliner.
its international market share. In addition to this Air India is also Goh Choon Phong, Chief Executive Officer,
adding new aeroplanes on lease to increase its capacity. A key Singapore Airlines, said that SIA’s collabo-
aspect of the airline’s plan has been the integration of Vistara ration to set up Vistara in 2013 had resulted
and Air Asia India. in a market-leading full-service carrier, which
had won many global accolades in a short
Vistara Joins the Mix time. “With this merger, we have an opportu-
nity to deepen our relationship with Tata and
In November, Singapore Airlines (SIA) and Tata agreed to merge participate directly in an exciting new growth
Air India and Vistara. SIA would also invest INR 20,585 million phase in India’s aviation market. We will work
in Air India as part of the transaction, giving it a 25.1 per cent together to support Air India’s transformation
stake in an enlarged Air India group. SIA said it intended to fully programme, unlock its significant potential,
fund this investment with its internal cash resources, which stood and restore it to its position as a leading air-
at S$17.5 billion as of 30 September 2022. SIA and Tata have line on the global stage.”

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