Tata group is set to merge its 4 owned major airlines - Air India, its subsidiary Air India Express, Vistara and AirAsia India.

Tata plans to bring all these airlines under one umbrella, Air India Group. This will take Air India's fleet size to 218 (Air

India-113, AirAsia India-28, Vistara-53, Air India Express-24).

 

The Tata Group owns 83.67% of AirAsia India, with the remainder owned by Malaysia-based AirAsia Berhad. Tata has

decided to complete the acquisition of AirAsia by buying AirAsia Berhad's stake in the company for $30 million. Initially,

the plan is to merge AirAsia India with Air India Express by the end of 2023. After the merger, the company will operate

under the name Air India Express.

 

In one of the largest mergers in the Indian aviation sector, Tata Group has announced the integration of Vistara with Air

India by March 2024. As part of the merger transaction, Singapore Airlines (SIA), which currently holds 49% stake in

Vistara, will invest Rs 12,059. crore to get 25.1% stake in the merged Air India.

"With this consolidation, Air India will become India's largest international airline and the second largest domestic airline

with a combined fleet of 218 aircraft," a Tata Group statement said.

 

According to Tata Group, it appears to be pursuing a clear two-pronged strategy with a low-cost carrier and a fuel service

carrier. Air India, on the other hand, would offer a higher value product/experience at a higher price. Air India's former

managing director, Mr. Bhargava, claims that "to achieve 2% of IndiGo's market share will require a lot of aggressive

market strategies

 

I believe that with the merger of Vistara and Air India, a decisive step has been taken towards transforming Air India into a

true airline of the highest calibre. Tata is working to transform Air India so that each and every customer receives excellent

service. As part of this transformation also focusing on expanding its route network , revamping its customer offering and

improving safety, reliability and punctuality.

 

Will this revival of Air India be the birth of a new world classic among Indian airlines?

Let us think about this.

 

Article compiled by:-

Mayank Garg

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