The Tata Group is evaluating options to consolidate Vistara and Air Asia India under Air India to bring operational synergies of the three airlines under its umbrella, people in the know of the matter told news agency PTI.
Tata Group took control of Air India in January after winner the acquisition bid of the national carrier for Rs 18,000 crore in October 2021. A team has been set up under RS Sandhu, the director of operations, to evaluate the synergies in operations between AirAsia India and Air India Express as well as between Vistara and Air India, sources said.
"Air India CEO and MD Campbell Wilson has set up this team, which will look into synergy between Air India Express and AirAsia India and also between Air India and Vistara and how to achieve the merger," a source said, adding that the team has been told to submit its plan within a year.
It is understood that the plan is to achieve consolidation of AirAsia India into Air India Express over a one-year period, while also targeting to bring all of the group's airlines businesses under the Air India umbrella by 2024.
An emailed query by news agency PTI to Tata Sons seeking comments remained unanswered.
Tata Group also holds a majority 83.67 percent stake in domestic budget carrier AirAsia India, which started flying in June 2014, while the remaining 16.33 percent is with the Malaysian airliners group AirAsia. The group is looking to acquire the remaining stake in AirAsia India from AirAsia Group.
In Vistara, Tata Sons' holding stands at 51 percent and the rest 49 percent is with Singapore Airlines. The full service carrier had started services from January 2015.
With PTI inputs
First Published: Sept 21, 2022 8:05 PM IST
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