Tata Sons started the process of including all its airlines in Air India, know the complete plan.
New Delhi: Tata Sons has started the process of consolidation of its aviation sector units Vistara, Air Asia India and Air India Express. The company has started this initiative after Vistara held talks with its joint venture partner Singapore Airlines. With this move, Air India will become the second largest airline in India in terms of fleet and market share.
A source aware of this whole matter has informed that after the merger, the planes will be operated only under the Air India brand name. After the merger, both the low-cost and full-service airline will be operated under the Air India brand name. Sources said that an official announcement regarding this could be made within a week.
Know the market share of each airline
Air India has a market share of 9.2 per cent in the domestic market. Its market share in the international market is 30 percent. The fleet size of Air India is 111. Air India Express has 20 percent share in the international market. Its fleet size is 24. Vistara has a domestic market share of 9.6 per cent. At the same time, the international market share is 3.9 percent. The fleet comprises 54 aircraft. Air Asia India’s fleet includes 28 aircraft. Its market share is 5.9.
Know what is the plan regarding Vistara
After this merger, the Vistara brand can be dropped. After the merger, SIA will acquire a minority stake in Air India with a stake of 20-25 per cent. Apart from this, some board members of Vistara can be included in the board of Air India.
Earlier this month, the Tata Group completed the consolidation of Air India Express and Air Asia. The company completed this process by acquiring the remaining 16 per cent stake in the Malaysian airline.