Tata Sons considering a bid on Air India

According to the Economic Times, Tata Sons is considering a bid for financial struggling Air India. Tata is planning to use its joint-venture with Singapore Airlines, Vistara, for this. However, when Tata and Singapore Airlines established Vistara, both companies agreed that Tata could only invest in one full-service carrier in India. So, if a bid for Air India is forthcoming, it will mean Air India and Vistara will need to be consolidated.

The newspaper reported that Tata and Singapore Airlines are negotiating about a possible bid, but that Singapore Airlines is reluctant to invest heavily at this moment due to the financial struggles as a result of the ongoing Corona-pandemic.

Vistara was established in 2013, with Tata Sons owning 51% of the shares and Singapore Airlines the remaining 49%. It is positioned as a premium and full-service carrier to cater for the high-end business travellers, as well as a rival to Air India. It currently has a fleet of 42 aircraft consisting of ten A320s, 22 A320neos, two A321neos, six B737-800s and two B787-9s. The airline is based at Delhi and currently serves 34 destinations, both domestic and international.

Air India, which was founded in 1932 (as Tata Airlines), is state-owned and has been having financial difficulties for years. Since 2017, the government has tried to sell off Air India. First, they planned to sell 76% of Air India and subsidiary Air India Express, but since last year they are offering 100%. Air India nowadays has a fleet of 126 planes; 21 A319s, nine A320s, 27 A320neos, twenty A321s, four B747-400s, three B777-200LRs, fifteen B777-300ERs and 27 B787-8s. Subsidiary Air India Express has a fleet of 24 B737-800s.

Photo by Boeing