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Tata Sons to offer stakes in Vistara to Singapore Airlines: Report

After the merger of Vistara and Air India, AI will become India's largest airline behind IndiGo

BS Web Reports | Air India | Tata Sons

BS Web Team  |  New Delhi 

Photo: Bloomberg

is eyeing to offer a stake in to Singapore (SIA) as a part of the adjustment to merge with . SIA owns a 49 per cent stake in Vistara's parent company Tata SIA Airlines, a report by Economic Times (ET) added.

With the merger of and Air India, is aiming to keep only one airline brand under its ambit. The group currently owns a 51 per cent stake in .

After the merger, will become India's largest airline behind . The company is also planning to merge other under one brand, including AirAsia India, and Air India Express.

"Consolidating the three — AirAsia, Vistara and Air India — would not only provide the Tatas with greater operational efficiency, but they will also be able to benefit from better bargaining power in their dealings with OEMs such as aircraft and engine manufacturers," Vihang Virkar, partner at Lumiere Law Partners told ET.

Air India has a legacy of over 75 years and is a more dominant brand, the report added.

"With Vistara and AirAsia having recently commenced international operations, using the brand name 'Air India' would most certainly benefit them," Virkar added.

N Chandrasekaran, chairman, had earlier stated that the group's airline businesses are operating on thin margins, and must be consolidated to ensure operational efficiencies and keep control of costs.

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First Published: Fri, September 23 2022. 11:20 IST