Singapore Airlines (SIA) announced that it is currently in discussions with partner Tata over the possible “integration” of Vistara and Air India. SIA said the move is “in line with its multi-hub strategy” and said “the discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India”.
Singapore Airlines holds a 49 percent equity interest in Tata SIA Airlines Limited, which operates Indian full-service carrier Vistara, based in New Delhi. The balance 51 percent equity interest in Vistara is held by the Tata Group, which recently acquired Air India.
The establishment of Vistara in 2013 gave the SIA Group a stake in India’s fast-growing aviation sector. India has strong domestic and international traffic flows, which are expected to more than double over the next 10 years. This is an integral part of the SIA Group’s multi-hub strategy, allowing it to get access to important sources that complement its strong Singapore hub, SIA said.
“The discussions are on-going and no definitive terms have been agreed upon between the parties. There is no certainty or assurance whatsoever that (a) any definitive agreement will be entered into or (b) the Potential Transaction will materialise or proceed to completion arising from these discussions. Even if a transaction were to materialise, it would be subject to the relevant regulatory approvals, among other matters,” SIA said.
Shareholders and potential investors are advised to exercise caution when dealing or trading in the securities of the company. Shareholders and potential investors should consult their stockbrokers, bank managers, solicitors or other professional advisers if they have any doubt about the actions they should take, SIA said.
For Editorial Inquiries Contact:
Editor Matt Driskill at matt.driskill@asianaviation.com
For Advertising Inquiries Contact:
Head of Sales Kay Rolland at kay.rolland@asianaviation.com
