Winning Bizness Desk
Mumbai. Big news is coming from the aviation sector. And that is the Tata Group is considering merging its four airline brands under Air India and scrapping the Vistara brand. The group is undertaking this exercise as part of its efforts to revive the faltering aviation empire. Sources close to the development have informed that Vistara Airlines is a joint venture between Tata Group and Singapore Airlines (SIA). The company is evaluating stake size in the joint entity. Singapore Airlines said in a statement that talks are ongoing between SIA and the Tata Group. SIA and Tata are looking to deepen the existing partnership. For this integration of Vistara and Air India can also be done.
An effort to revive the aviation company
Even since Tata Group has overtaken and become the new owner of Air India, it has been preparing to revive this company. In this exercise, the full service carrier is looking to place orders for more than 300 narrow-body jets. This transaction will be one of the largest orders ever in commercial aviation history. Boeing and Airbus are already in the process of taking a major part of this order.
Working on raising funds
Air India is in talks to raise at least $100 million (about Rs 8,170 crore) in a funding round. In this funding round, the value of the airline can be estimated at $ 500 million (about Rs 40,850 crore). The airline plans to induct 25 Airbus SEs and five Boeing aircraft from leased companies from December.