New Delhi: Tata Sons is working on a plan to merge low-fare airline AirAsia India with Air India Express, media reports suggested on Thursday. As per a report by Economic Times, the Tata group is looking to achieve synergies and cut operational costs by merging these two airlines.Also Read – International Flights: Air India Express Announces Flights to Malaysia For December 2021, Opens Booking. Full Schedule Here
It must be noted that Tata owns 84 per cent stake in AirAsia India, allowing it to create a single airline entity. On the other hand, Tata is yet to conclude negotiations with Singapore Airlines (SIA) on combining the schedules of Vistara and Air India, the report stated. Notably, Tata has a 51 per cent stake in Vistara and SIA holds the rest. Also Read – International Flights: Air India Express Announces Flights Between Abu Dhabi, Kozhikode From Nov 4 | Check Full Flight Schedule, Ticket Fare
Sources close to the matter told the news daily that this is the most logical move at this stage and with Tata owning a majority in Air Asia, the integration is easier. He added that this integration will help the group swiftly set up the single airline structure it has been planning for a while. Also Read – International Travel: Bahrain Announces Relaxations For Fully Vaccinated Passengers Including Indians
The Tata Sons had in October regained control of Air India as the Central government accepted its winning bid of Rs 18,000 crore to acquire 100 per cent of the ailing national carrier.
Off late, Tata Sons had held several rounds of talks with the top management of AirAsia India and Air India to continue the discussion on integration of staff, and aircraft quality and safety checks.
Air India Express was launched in April 2005 as a low-cost carrier with the aim of providing convenient connectivity to short/medium-haul international routes in the Gulf and southeast Asia at affordable fares.
As per the report, Tata Sons has urged the global head hunters to create the top management structure for its aviation entity as it is planning to establish one aviation holding company in order to bring the entire airline business under one umbrella.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
