Tata to Bring AirAsia to Air India, Marketing & Advertising News, AND BrandEquity

Tata Sons has offered to merge AirAsia India under the Air India umbrella if its bid for the common carrier is successful. At a later stage, Vistara will also likely be part of a combined entity if Singapore Airlines (SIA), its 49% shareholder, commits.

Malaysian company AirAsia Bhd, which owns around 16% of AirAsia India, will pull out by March 2022, selling its remaining stake for $ 18 million, according to an ET report.

Apparently, the Tata Group has also contacted SIA regarding their possible plan to consolidate their Vistara joint venture under a single airline entity to ensure synergies and eliminate duplication.

The report added that if the offer were successful, AirAsia India would likely be clubbed with the Air India Express budget unit and that SIA had been convinced to integrate Vistara’s network with that of the national carrier Air India.

Tata Sons owns nearly 84% of AirAsia India. At the end of last year, it bought an additional 32.67 percent from the low-cost carrier, up from 51 percent. According to the agreement, Tata has a call option on the remaining 16.33% of AirAsia India. The conglomerate owns 51 percent of Vistara and SIA owns the rest.

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