Why TATA wants to Scrap Vistara Brand?

Tata Group is considering a plan to integrate its four airline brands under Air India Ltd. India's largest conglomerate is also considering removing the Vistara brand, which is the Indian subsidiary of Singapore Airlines Ltd, the report added.

According to a Bloomberg report, the Tata group plans to scrap the Vistara brand, which is a Tata-SIA joint venture. The report indicated that Singapore Airlines is evaluating the size of the stake it should have in the combined entity.

The merger process is likely to start soon with the transfer of its ownership in AirAsia India to Air India. The consolidation of these two airlines, which operate as low-cost carriers, will take place as part of the planned restructuring roadmap for the Tata Group's airline business.

The merger is likely to be completed in the next 12 months. After this merger is complete, the Tata Group may consider an Air India-Vistara merger, with Singapore Airlines (SIA), which owns part of Vistara, partnering with the group to become co-owners of Air India.

A few days ago, Air India announced the full acquisition of the budget airline Air Asia India. The Indian airline said it has signed agreements to complete the acquisition of 100 per cent of AirAsia India's shares and to subsidize it under Air India.

Earlier, Campbell Wilson, CEO and MD of Air India, said: "We are excited to initiate the creation of a single low-cost airline of Air India Group. This is a key step in the rationalization and transformation of the Group, and we will do so."

"We will work closely with the management teams and staff throughout the process. We also look forward to the many new opportunities that a stronger AI Group low-cost airline will bring for customers and staff alike."

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