Singapore Airlines In Talks With Tata Group For Vistara-Air India Merger SIA, however, has cautioned its investors that there is no certainty of a deal
By Teena Jose
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Singapore Airlines Ltd (SIA), on Thursday, said that it was in talks with India's Tata Group about a potential merger of Vistara, their joint venture airline, with Air India to explore South Asia.
"In line with its multi-hub strategy, SIA is currently in confidential discussions with the Tatas to explore a potential transaction in relation to the securities of Vistara and Air India. The discussions seek to deepen the existing partnership between SIA and Tatas, and may include a potential integration of Vistara and Air India," said SIA, in a notification to the Singapore stock exchange.
As per reports, this is the first time that Singapore Airlines (SIA), which holds 49 per cent stake in Vistara, has officially acknowledged that it is in talks with Tata Group on the possibility of merging the two airlines.
SIA, however, has cautioned its investors that there is no certainty of a deal.
"The discussions are ongoing and no definitive terms have been agreed upon between the two parties. There is no certainty or assurance whatsoever that any definitive agreement will be entered into or a potential transaction will materialize or proceed for completion arising out of these discussions," said SIA.
SIA considers India as an important market for its multi-hub strategy. Reportedly, Tata want to make Air India the flagship airline of their aviation business. The group is also aiming for 30 per cent market share for Air India in the domestic market as part of a five-year transformation plan released last month.
