The largest conglomerate in India is thinking about getting rid of the Vistara name; Singapore Airlines is determining how much of the merged company it should own. Vistara is the local subsidiary of Singapore Airlines Ltd. in South Asia.
Tata Group is considering integrating its brands Air India, Vistara, Air India Express and AirAsia India will merge under Air India Ltd to rebuild its ailing aviation empire.
The Vistara brand, which is used in South Asia by Singapore Airlines Ltd.’s local subsidiary, is also being contemplated by India’s largest conglomerate.
With Tata as its new owner, Air India is getting ready for a makeover. The full-service airline is thinking of placing an order for up to 300 narrow-body aircraft, which would be one of the biggest purchases in the annals of commercial aviation.
Air India Chief Executive Campbell Wilson said
the airline will triple its fleet of 113 aircraft over five years, with a “significant” increase in both narrow and wide-body aircraft.
Other persons with knowledge of the situation stated in late September that Air India is also in talks to raise at least $1 billion in a capital round that could value the airline at approximately $5 billion. Starting in December, the airline intends to add 25 Airbus SE and five Boeing Co aircraft from lessors.
In October of last year, Tata was chosen as the successful bidder for Air India after outbidding competitors with a $2.4 billion offer. Under Prime Minister Narendra Modi, the purchase was the most visible privatisation in the nation and put a stop to decades of attempts to sell the financially struggling, indebted carrier that had relied on state bailouts for years to operate.
Additionally, it meant that Tata possessed four airline brands: Air India, Vistara, a full-service airline, as well as the low-cost airlines’ Air India Express Ltd. and AirAsia India.
Earlier this month, Air India announced that it will buy AirAsia’s local subsidiary and combine it with Air India Express to form a single low-cost carrier. By the end of 2023, that consolidation will probably take place.