AirAsia India and Vistara may be consolidated under Air India by Tatas
The Tata Group is reportedly considering alternatives to combining AirAsia India and Vistara under Air India to create operational synergies between the three airlines.
Air India operations manager RS Sandhu has reportedly assembled a team.
The panel, tasked with examining the synergies between Air India Express and AirAsia India and between Air India and Vistara and the execution of the merger, was appointed by Campbell Wilson, CEO and Managing Director of Air India. The team has been asked to report their approach within a year, the insider added.
The aim of the plan is believed to be to merge AirAsia India into Air India Express within a year, with the ultimate goal of unifying all airlines in the group under the Air India brand by 2024.
Tata Sons did not respond to an emailed request for comments.
In January this year, the government handed back control of Air India and its low-cost overseas division, Air India Express, to the Tata Group.
AirAsia India, a local low-cost airline that began operations in June 2014, is owned by the group with a majority stake of 83.67%, while AirAsia Malaysia holds a remaining 16.33% stake. The Company aims to acquire AirAsia Group’s remaining shares in AirAsia India.
Low-cost airline SpiceJet has been ordered by the DGCA to continue operations at 50% capacity until October 29. She stated that the restrictions had been increased from “abundant supplies”.
Due to several breakdowns in SpiceJet’s flights, the airline’s Directorate General for Civil Aviation (DGCA) ordered on July 27th not to operate more than 50% of its approved summer timetable for eight weeks.
According to the evaluation, the number of security incidents has decreased noticeably. The DGCA stated in its decision that due to a plethora of precautionary measures, the limits set out in the July 27 order will remain in effect until the conclusion of the summer flight schedule (which ends on October 29). Before a capacity increase of more than 50% can be authorised, the airline must “demonstrate that it has the technical assistance and financial means to safely execute such additional capacity,” the statement said.
Here’s how to take advantage of AirAsia’s FREE 50 lakh tickets on sale until September 25 to celebrate the return.
AirAsia is now offering a sale of 5 million free seats on busy local and international routes. Here’s how to take advantage of AirAsia’s FREE 50 lakh tickets on sale until September 25 to celebrate the return.
To commemorate his return, AirAsia is giving away 5 million free seats that went on sale yesterday. Customers have until September 25 to buy tickets with discounts. According to the article, the incentives are good for travel between January 1 and October 28, 2023.
“We want to say thank you to our loyal customers who have supported us through thick and thin with the biggest FREE Seats* campaign ever. As well as relaunching some of our popular routes, we are also launching new and exciting routes to add variety and value,” said AirAsia Group Chief Commercial Officer Karen Chan, Mint said.
Chan added, “With all of this, we encourage everyone to take advantage of our Big Sale and promise to always make air travel accessible to all. This special offer has also been put together to celebrate our 21st birthday and the ongoing reopening of borders around the world. As always, we urge price seekers to book immediately as we anticipate the best deals will sell out quickly.
Thailand, Cambodia and Vietnam are just some of the ASEAN countries where travelers can benefit from the promotion. Two months ago, consumers could fly AirAsia for free.
Air India and Vistara will merge to create a world-class global airline. What we know so far
In India, Air India and AirAsia have a combined market share of 13%. AirAsia India and Air India Express will be merged, as the group has long intended.
In the aviation sector, there is talk of a possible merger between Air India, controlled by Tata, and Vistara, a joint venture between Tata Sons and Singapore Airlines, as part of Air India’s ambition to significantly increase its market share to at least 30% . on the domestic market.
On September 15, Air India unveiled its comprehensive transformation plan to reclaim its position as the leading global airline. It stated that over the next five years it would aim to increase its local market share to at least 30% while aiming to significantly increase its international routes from its existing market share. The strategy aims to put Air India on the path to consistent development, financial success and market dominance.
In August, Air India carried 8.61 lakh passengers and had a market share of 8.5%. On the other hand, Vistara maintained its second place in market share (9.7%) in the last two months of July (10.4%) and August. In addition, as part of its fleet growth strategy, Air India announced the introduction of 25 narrowbody aircraft and five widebody aircraft. The airline has also expressed an interest in getting its grounded aircraft back into service.
On the other hand, Vistara now operates 55 aircraft and 60 will be added in the coming months. Due to the increased capacity in Frankfurt and Paris, Vistara will increase its European flight capacity from the end of October.
When asked about the likelihood of a merger, an industry insider stated that there had been rumors of the merger, particularly following the announcement of Air India’s transformation plan. This will only become clear in the coming months. Rumors of a merger with Vistara are sufficiently supported by Air India’s aspirations to capture a 30% market share from the current 8.5%, he added.
Both airlines declined to comment on the likelihood of a merger when asked.
In addition, the Competition Commission of India approved Air India’s proposal to acquire the entire 83.67% stake in Air Asia India owned by Tata Group. The group’s efforts to merge the two airlines are strengthened by the approval. Four airlines are now operated by Tata Group: Air India, Air India Express, AirAsia India and Vistara. Both Air India and Vistara fly domestically and internationally. Air India Express only flies on international routes while AirAsia only flies on local routes.
In India, Air India and AirAsia together account for 13% of the market. The merger of AirAsia India and Air India Express was originally planned by the group.
Air India has grown into a major global airline, with a network now spanning the United States, Canada, United Kingdom, Europe, Far East, South East Asia, Australia and the Gulf. Ladakh, the Andaman and Nicobar Islands and inhospitable regions of north-eastern India are just a few of the destinations the airline flies to.