{"id":20594,"date":"2022-05-16T16:05:50","date_gmt":"2022-05-16T10:35:50","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=20594"},"modified":"2022-05-16T16:05:53","modified_gmt":"2022-05-16T10:35:53","slug":"the-big-merger-air-india-airline-and-vistara-could-become-one-by-the-end-of-2023","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2022\/05\/16\/the-big-merger-air-india-airline-and-vistara-could-become-one-by-the-end-of-2023\/","title":{"rendered":"The big merger: Air India airline and Vistara could become one by the end of 2023"},"content":{"rendered":"\n

A piece of recent information suggests the two airlines could merge by the end of next year. Long before the Tata Group officially took over Air India, whispers about the airline\u2019s likely merger with Vistara started floating about.<\/span><\/strong><\/p>\n\n\n\n

After all, both have a comparable business model and work a similar fleet. And while the Tatas <\/a>have stayed tight-lipped on the merger question, a piece of recent information suggests it might just happen by the end of next year.<\/strong><\/p>\n\n\n\n

The decision by the end of 2023<\/h2>\n\n\n\n
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Air India | Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n

Air India\u00a0and\u00a0Vistara\u00a0could reportedly become a single entity by the end of next year. A piece of recent information has further fueled the long-standing speculation that the Tata Group<\/a> could merge the two full-service carriers into a single airline if everything goes according to the program.<\/p>\n\n\n\n

Sources have revealed to the English daily that\u00a0Singapore Airlines, which has a 49% share in Vistara, has asked to wait until the end of next year to make a decision about the merger. A person familiar with the matter revealed,<\/p>\n\n\n\n

Tata group and Singapore Airlines <\/h2>\n\n\n\n

\u201cThe Tatas <\/a>and Singapore Airlines<\/a> have discussed the merger possibility earlier this year. SIA had even agreed to join the Tata bid for Air India but because of the pandemic, it chose to back out given its poor financial condition.\u201d<\/p>\n\n\n\n

Singapore Airlines is assessing the situation With a 49% share in Vistara, SIA does have a say in any potential future agreement concerning the carrier. But the airline has given its support to the Tatas in the past by waiving the non-compete clause in Vistara\u2019s contract to permit the Tata Group to bid for the national carrier.
The airline is anticipated to examine all aspects of the merger, including how much equity it will hold in Air India, once an agreement is finalized. The source further said,<\/p><\/blockquote>\n\n\n\n

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\u201cSIA has asked for time till the end of 2023 to decide whether it wants to go ahead with the merger or not. What they\u2019re looking for is some stability in their financial condition, and that of Air India\u2019s operations post the disinvestment.\u201d<\/p>\n\n\n\n

Many also view the appointment of Air India\u2019s new chief executive, Campbell Wilson, as a positive step that could aid in the merger. After all, Singapore Airlines has nothing but good things to say about Wilson. The carrier’s CEO Goh Choong Phong has commented that although the company is sad to lose an experienced senior executive like Campbell, he goes to Air India with their full blessings.<\/p>\n\n\n\n